Norfolk Southern has agreed to a $600 million settlement arrangement to conclude a class-action lawsuit following the derailment of a train in East Palestine, Ohio in February 2023. The settlement awaits court approval before being finalized.
The train derailment, which resulted in a giant plume of black smoke due to the burning of five tankers carrying vinyl chloride, compelled the evacuation of hundreds of residents due to health concerns related to the potential presence of dioxins. The evacuation order was declared after fears of an explosion at the fiery site and was lifted on February 9, with the assurance of the EPA that air quality reverted back to safe levels.
“If approved by the court, the agreement will 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 said in an official statement.
In the agreement, Norfolk Southern has itemized the allocation of the settlement fund: $104 million for community aid, inclusive of $25 million for a regional safety center and direct payments to residents; $4.3 million towards bettering water infrastructure; $2 million for ‘community-directed projects’; and $500,000 assigned for local economic growth.
Despite no immediate injuries reported during the derailment, residents reported ongoing health issues in the aftermath of the event. In a preliminary report, the National Transportation Safety Board (NTSB) cited a wheel bearing overheat failure as the cause of the derailment, framing it as entirely preventable.
The Biden government was heavily criticized for its response to the disaster. Following the chemical spillage, it failed to declare a public emergency in East Palestine despite the obvious risks posed to area residents. Moreover, Biden himself didn’t visit the community until nearly 400 days after the disaster occurred. A report earlier this year found that train derailments had increased by 13 percent under Biden’s Transportation Secretary, Pete Buttigieg.
