Gene J. Puskar/AP
This photo taken with a drone shows portions of a Norfolk Southern freight train that derailed Friday night in East Palestine, Ohio, are still on fire at mid-day Saturday, Feb. 4, 2023. The rail company announced it has reached a $600 million settlement with residents affected by the derailment.
New York
CNN
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Norfolk Southern has reached a $600 million settlement that, if approved by a court, will resolve all class-action lawsuits within 20 miles of its 2023 East Palestine, Ohio, derailment that spilled more than a million pounds of hazardous chemicals into the soil, water and air.
The rail company said the settlement is intended to offset costs related to the spill that sent a plume of toxic smoke into the air and displaced many residents and businesses. But Norfolk Southern didn’t admit to any liability or wrongdoing as a result of the settlement.
“Individuals and businesses will be able to use compensation from the settlement in any manner they see fit to address potential adverse impacts from the derailment,” the company said in a statement. “This could include healthcare needs and medical monitoring, property restoration and diminution, and compensation for any net business loss.”
The settlement also allows residents within 10 miles of the derailment to receive additional compensation.
In a court filing Tuesday, the plaintiffs said they expected to file a motion for the judge to approve the settlement within 10 days.
Following the February 3, 2023, Norfolk Southern freight train derailment, residents were ordered to evacuate temporarily. State and federal environmental officials say testing shows the air and water in the town is now safe, but some residents still complain of health problems, including burning sensations in their eyes, tingling in their lips, heaviness in their chest and swelling of lymph nodes in their necks and groins.
Since then, the company says it has spent $104 million in community assistance to East Palestine and the surrounding areas, $4.3 million to upgrade the area’s drinking water infrastructure and $500,000 for economic development, among other contributions.
But several class-action lawsuits say the company hasn’t done enough to remediate the toxic chemicals released into the area. They also blamed Norfolk Southern for negligence.
Among the questionable decisions the company made was a massive, controlled burn that released toxic chemicals into the air three days after the derailment. The rail company said there was an imminent risk of an uncontrolled explosion if the chemicals were not released and burned off. The officials on the ground who authorized the controlled burn were told they had only minutes to make the decision before an explosion.
But the chair of the National Transportation Safety Board testified last month at a Senate hearing that the controlled burn was unnecessary.
Shares of Norfolk Southern (NSC) fell 2% in premarket trading.
This is a developing story and will be updated.
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