Settlements Reach $12.5M after Massive Fire at Fertilizer Plant in Winston-Salem, NC

It took days and more than four million gallons of water for Winston-Salem firefighters to extinguish the fire four years ago.

By John Deem

Source Winston-Salem Journal, N.C. (TNS)

Feb. 4, 2026

3 min read

More than four years after a potentially deadly fire destroyed a Winston-Salem fertilizer plant, settlements have reached $12.5 million in a class-action lawsuit related to the blaze.

In the second of two deals, Winston Weaver Fertilizer Co. will pay $4.5 million to compensate businesses near the North Cherry Street site that were impacted by the blaze, which Winston-Salem’s fire chief feared had the potential to spark one of the worst explosions in U.S. history.

It follows an earlier $8 million settlement for individual residents who lived near the plant and were subject to a voluntary evacuation order after responders learned that an estimated 600 tons of highly explosive ammonium nitrate was stored on the property.

The Winston-Salem Fire Department retreated from the fire at one point after finding out about the presence of the substance, which is a common ingredient in fertilizer.

About 500 businesses were in the one-mile evacuation zone and forced to close for periods ranging from three days to three weeks, according to the lawsuit, which was filed in 2022.

“This $4.5 million settlement represents meaningful accountability and critical relief for the hundreds of businesses that were forced to shut their doors due to the massive fire and its lasting effects,” said Tom Wilmoth, partner and head of litigation at James Scott Farrin and lead attorney for the plaintiffs. “Business owners lost revenue, inventory and momentum overnight, and while nothing can undo that disruption, this agreement helps them begin to recover and move forward.”

Businesses in the area range from small offices and retail outlets to large industrial facilities.

Affected businesses now must submit claim forms and documentation of the fire’s impact to qualify for a share of the settlement, Wilmoth said.

Dangers of ammonium nitrate

Although investigators never determined a cause, the lawsuit alleged that negligence by Winston Weaver Co. contributed to the destructive blaze on the 9-acre site and heightened the potential for an explosion.

There was 20 times more ammonium nitrate at the 80-year-old facility than the amount that detonated in 2013 after being heated by a fire at a Texas fertilizer plant. That blast killed 15 people (including a dozen first responders), injured 250, leveled an entire block, and damaged or destroyed more than 150 buildings, including two schools and a nursing home.

During the Winston Weaver fire, smoke engulfed portions of the city. At one point, Environmental Protection Agency monitors reported air particulate levels seven times higher than what the agency deems hazardous.

It took days — and more than 4 million gallons of water — to fully extinguish the flames.

The lawsuit alleged that Winston Weaver raised the risk of a fire or explosion by improperly storing ammonium nitrate and failing to train employees on how to handle hazardous chemicals.

Before the fire, neglected structural deficiencies likely exposed stored ammonium nitrate to water when it rained, a post-blaze investigation by the North Carolina Department of Labor concluded.

Wet ammonium nitrate "may lump or cake together, resulting in the weight of the material getting compressed into a solid mass, and therefore increasing the likelihood of a detonation in the event AN is exposed to heat or shock," state investigators noted.

In addition to an alleged lack of oversight, the company also failed to inform neighbors and the city of "hidden dangers and unsafe conditions present at the plant, of which they knew or could have discovered by reasonable inspection in the exercise of due care," the lawsuit claimed.