Norfolk Southern Agrees to $600M Settlement for East Palestine, OH, Derailment

April 9, 2024
If approved, it will end a class action suit filed after the train derailed and spilled toxic chemicals.

Adam Ferrise


CLEVELAND, Ohio — Norfolk Southern Railway has agreed to pay $600 million to settle settlement the train derailment in East Palestine that spilled toxic chemicals across the city.

U.S. District Judge Benita Pearson in Youngstown must sign off on the proposed agreement before it goes into effect. Both the train company and plaintiffs attorneys asked the judge to approve the deal.

The settlement, filed in federal court on Tuesday, would end the claims against Norfolk Southern and railcar companies, including GATX Corp., General American Marks Co., OxyVinyls LP and Trinity Leasing Co.

It would also resolve claims within a 20-mile radius over the derailment site and personal injury claims by residents who live within a 10-mile radius.

The settlement came after three days of mediation, led by former federal judge Layn Phillips.

Lawsuits were filed shortly after the Feb. 3, 2023, derailment of 38 rail cars carrying hazardous materials, spilling into the ground and catching fire.

The agreement does not include any admission of liability, wrongdoing or fault.

This is a breaking news story and will be updated.


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