Rail firm to pay $600m for Ohio mishap
Railroad company Norfolk Southern agreed to pay $600 million to settle lawsuits related to a fiery train derailment with toxic materials in February 2023 in eastern Ohio.
If approved by the US District Court in Ohio, the settlement would cover lawsuits within 20 miles (32 kilometers) of the accident, which released toxic smoke into the air and forced many residents and businesses to leave the area. The settlement also covers personal injury claims within a 10-mile radius of the derailment.
Norfolk Southern, though said the settlement doesn’t mean an admission of liability, wrongdoing or fault.
“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 Tuesday. “This could include healthcare needs and medical monitoring, property restoration and diminution and compensation for any net business loss.”
The 2023 derailment of cars containing hazardous materials occurred outside East Palestine, Ohio. It sent fumes and chemicals into the air, which led to about 2,000 out of 4,700 residents to evacuate temporarily.
Some businesses were closed, while residents with homes close to the derailment site and nearby creeks said they were still exposed to chemicals after they returned.
They complained of health problems from the exposure, including a burning sensation in their eyes, tingling in their lips, heaviness in their chest and swelling of lymph nodes in their necks and groins, according to CNN.
East Palestine residents like Misti Allison have many unanswered questions, The Associated Press reported.
“What goes through my head is, after all the lawyers are paid and the legal fees are accounted for, how much funding will be provided for families? And is that going to be enough for any of these potential damages moving forward?” she said.
Jami Wallace, too, worries about having a settlement without knowing the long-term impact of the derailment.
“I would really like to see the numbers because in my opinion, taking a plea deal only is in the best interest of the attorneys,” she said. “They’re all going to get their money. But we’re the residents that are still going to be left to suffer.”
Norfolk Southern estimated in January that the total cost related to the derailment would top $1.1 billion and will continue to grow because of continuing cleanup work and lawsuits. Norfolk Southern’s profit for the last quarter of 2023 had fallen 33 percent.
In a court filing on Tuesday, the plaintiffs said they expected to file a motion for the judge to approve the settlement within 10 days. Attorneys representing the claimants said they hope to make the claims process easy and efficient and to begin sending out payments by the end of 2024.
The National Transportation Safety Board hasn’t finished investigating the accident, but its preliminary report said that a wheel bearing in the final stage of overheat was observed from a surveillance video from a local residence.