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 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.

A Norfolk Southern freight 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 did not admit 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 under the settlement could begin by the end of the year, subject to final court approval. 

The plaintiffs' attorneys said the deal is the result of a year of intense investigation of the derailment, and should provide meaningful relief to residents.

'This resolution comes shortly after the one-year anniversary of the disaster and will provide substantial compensation to all affected residents, property owners, employees and businesses residing, owning or otherwise having a legal interest in property, working, owning or operating a business for damages resulting from the derailment and release of chemicals,' said Norfolk Southern's lawyers.

The railroad company announced preliminary first-quarter earnings of 23 cents per share Tuesday to reflect the impact of the settlement.

Norfolk Southern CEO Alan Shaw, who received a 37 percent pay raise in 2023, said the company is 'becoming a more productive and efficient railroad. There is still more work to be done to achieve industry-competitive margins.'

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.

Last week federal officials said that the aftermath of the train derailment doesn't qualify as a public health emergency because widespread health problems and ongoing chemical exposures have not been documented.

The Environmental Protection Agency never approved that designation after the February 2023 Norfolk Southern derailment even though the disaster forced the evacuation of half the town of East Palestine and generated many fears about potential long-term health consequences of the chemicals that spilled and burned. 

Contamination concerns were exacerbated by the decision to blow open five tank cars filled with vinyl chloride and burn that toxic chemical three days after the derailment.

The head of the National Transportation Safety Board said recently that her agency's investigation showed that the vent and burn of the vinyl chloride was unnecessary because the company that produced that chemical was sure no dangerous chemical reaction was happening inside the tank cars. But the officials who made the decision have said they were never told that.

The NTSB's full investigation into the cause of the derailment will not be complete until June, though the agency said that an overheating wheel bearing on one of the railcars that wasn't detected in time by a trackside sensor likely caused the crash.

The EPA has said the cleanup in East Palestine is expected to be completed sometime later this year.

Dramatic pictures and footage of the incident showed a huge fire after the derailment, which left railcars and debris strewn across the area. 

After they were cleared to return, some residents told DailyMail.com they were still feeling the effects of the toxic runoff, including rashes, shortness of breath, headaches and more.  

A mobile lab of scientists at Texas A&M University and Carnegie Mellon University had discovered a chemical known as acrolein in the air in the wake of the catastrophic train derailment.

The analysis comes from February 20 and 21, 2023, less than three weeks after the crash and was taken from the air, ground water and local residents homes. 

According to the Centers for Disease Control & Prevention, acrolein is either a clear, colorless gas or a pale yellow, strong-smelling liquid.

It evaporates easily at normal temperatures, producing toxic concentrations. It is poisonous no matter what the exposure route is. It causes inflammation and irritation of the skin, respiratory tract and mucus membranes.

After it is inhaled, it can cause delayed pulmonary edema — excess fluid in the lungs. This can lead to coughs, chest pain and fatigue. 

In September, President Joe Biden finally took steps to hold Norfolk Southern accountable for the devastating train derailment.

He signed an executive order that put a halt to Ohio's emergency major disaster declaration in regards to the derailment. 

The order will 'ensure that Norfolk Southern continues to be held accountable for this disaster, to address any of the disaster's long-term effects, and to ensure federal assistance is available to affected communities should needs develop that are not met by Norfolk Southern,' according to the White House.

The order will also see a Federal Disaster Recovery Coordinator appointed in order to deal with long-term clean-up in East Palestine. The coordinator will ensure that Norfolk Southern meets its 'obligations to the community.'

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.