Norfolk Southern Agrees $600M Payout for Residents Impacted by Toxic East Palestine Disaster

Norfolk Southern agreed Tuesday to pay $600 million in a class-action lawsuit settlement related to the toxic East Palestine, Ohio, train derailment in February 2023.

The Associated Press reports the company said the agreement, if approved by the court, will resolve all class action claims within a 20-mile radius from the derailment and, for those residents who choose to participate, personal injury claims within a 10-mile radius from the fiery incident. The report continued:

Norfolk Southern added that 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, which could include healthcare needs, property restoration and compensation for any net business loss.

Individuals within 10-miles of the derailment may, at their discretion, choose to receive additional compensation for any past, current, or future personal injury from the derailment.

The settlement doesn’t include or constitute any admission of liability, wrongdoing, or fault, the company made clear.

It is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024, according to the Associate Press.

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Payments to class members could further begin by the end of the year, subject to final court approval.

Norfolk Southern says it has already spent more than $1.1 billion on its response to the derailment, including more than $104 million in direct aid to East Palestine and its residents.