$600 million
settlement underscores commitment to making it right
ATLANTA, April 9,
2024 /PRNewswire/ -- Norfolk Southern Corporation
(NYSE: NSC) announced Tuesday that it has reached a $600 million agreement in principle to resolve a
consolidated class action lawsuit relating to the East Palestine derailment. 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.
This is another promise kept by Norfolk Southern to make it
right for the people of East
Palestine and the surrounding communities. In March 2023, the company made commitments to
address three long-term concerns of residents: drinking water, home
values, and healthcare. Already, the company has announced programs
for drinking water and home value assurance. The company is going
further through this comprehensive settlement—providing additional,
significant monetary relief to individuals, including for
healthcare, and to help qualifying local businesses continue to
rebuild and grow.
The agreement is designed to provide finality and flexibility
for settlement class members. 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.
This could include healthcare needs and medical monitoring,
property restoration and diminution, and compensation for any net
business loss. In addition, individuals within 10-miles of the
derailment may, at their discretion, choose to receive additional
compensation for any past, current, or future personal injury from
the derailment.
This settlement furthers the work Norfolk Southern has done to
make it right in East Palestine
and the surrounding communities. In addition to this settlement,
Norfolk Southern has made contributions including:
- $104 million in community
assistance to East Palestine and
the surrounding areas in Ohio and
Pennsylvania, including
$25 million for a regional safety
training center, $25 million in
planned improvements to East
Palestine's city park, $21
million in direct payments to residents, and $9 million to local first responders;
- $4.3 million to support upgrades
to drinking water infrastructure;
- $2 million for community-directed
projects;
- $500,000 grant for economic
development; and
- Ongoing support to the community through the Family Assistance
Center and programs such as the Interim Value Assurance
Program.
To learn more about Norfolk Southern's commitment and ongoing
remediation efforts, visit NSMakingItRight.com.
This agreement does not include or constitute any admission of
liability, wrongdoing, or fault. It was reached through extensive
negotiations with court-appointed class counsel and with the expert
assistance of former federal district judge Layn Phillips, a nationally renowned neutral
mediator. It is expected to be submitted for preliminary approval
to the U.S. District Court for the Northern District of
Ohio later in April 2024. Subject to final court approval,
payments to class members under the settlement could begin by the
end of this year. The actual allocations and payments to
households, businesses, and individuals will be determined by
court-appointed class counsel. Class members will soon receive
additional details about the settlement, including the contact
information for a Settlement Administrator to whom they can direct
any questions and information regarding a Claims Assistance Center
in East Palestine.
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its
predecessor companies have safely moved the goods and materials
that drive the U.S. economy. Today, it operates a customer-centric
and operations-driven freight transportation network. Committed to
furthering sustainability, Norfolk Southern helps its customers
avoid approximately 15 million tons of yearly carbon emissions by
shipping via rail. Its dedicated team members deliver more than 7
million carloads annually, from agriculture to consumer goods, and
Norfolk Southern originates more automotive traffic than any other
Class I Railroad. Norfolk Southern also has the most extensive
intermodal network in the eastern U.S. It serves a majority of the
country's population and manufacturing base, with connections to
every major container port on the Atlantic coast as well as major
ports in the Gulf of Mexico and
Great Lakes. Learn more by visiting www.NorfolkSouthern.com.
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SOURCE Norfolk Southern Corporation