Norfolk Southern agrees to pay town of East Palestine $600million a year after toxic train derailment that destroyed the town

Norfolk Southern has agreed to pay $600 million in a class-action lawsuit settlement related to a fiery train derailment in February 2023 in eastern Ohio. 

Pending court approval, the agreement would 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 derailment.

Norfolk Southern is the freight train company whose train caught fire and released more than a million gallons of hazardous materials and pollutant in the town of East Palestine in February 2023.

The company will not admit any liability or wrongdoing, but will provide compensation 'for past, present and future personal injuries resulting from exposure to the chemicals involved', the lawyers bringing the action against Norfolk Southern said in a joint statement.

The settlement is expected to be submitted for preliminary approval to the U.S. District Court for the Northern District of Ohio later in April 2024. Payments to class members under the settlement could begin by the end of the year, subject to final court approval. 

Last year, Norfolk Southern agreed to compensate homeowners around East Palestine, Ohio who have had to sell their properties at a reduced value.

They have already spent more than $1.1 billion on its response to the derailment - which forced almost half the town's population to evacuate - including more than $104 million in direct aid to East Palestine and its residents.

In addition to the class action, Norfolk Southern also faces lawsuits filed by shareholders, the state of Ohio and the U.S. Justice Department.

In May 2023, a U.S. Senate committee approved bipartisan rail safety legislation that tightens rules on trains carrying explosive substances like the Norfolk Southern-operated train, but further action has stalled.