Norfolk Southern to pay $600 million to settle spill case

Norfolk Southern Corp. said it would pay $600 million to settle lawsuits over its train derailment in Ohio last year that spilled more than 1 million gallons of toxic chemicals and sickened residents.

The Atlanta-based railroad company said Tuesday it had agreed to resolve consolidated legal claims pressed by as many as 500,000 residents, property owners and businesses in the East Palestine area over the disaster. The Feb. 3, 2023, derailment of a freight train released dangerous chemicals such as vinyl chloride, considered a carcinogen, and prompted an evacuation of local residents. 

Shares of Norfolk Southern were up 1.6% at $254.31 at 9:35 a.m. in New York.

Shortly after the accident, Norfolk Southern launched a controlled burn of the chemicals to mitigate the explosion risk. East Palestine residents blamed the resulting cloud for headaches, lingering odors and pet deaths, and said the incident had led to increased cancer risk.

“This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses,” lawyers representing victims of the derailment said in an emailed statement.

In a statement Tuesday, Norfolk Southern said the settlement resolves all class action claims in a 20-mile radius of the derailment and personal injury claims in a 10-mile radius of the disaster. It said the pact wasn’t an admission of liability. 

The case is In Re East Palestine Train Derailment, 23-cv-00242, US District Court, Northern District of Ohio.