Norfolk Southern reaches $600M settlement for train derailment

The rail company on Tuesday said it had reached an agreement to settle claims related to a chemical spill last year. The consolidated class action lawsuit would deal with claims within 20 miles of the derailment site in East Palestine, Ohio, and resolve additional personal injury claims within 10 miles of the site. A law firm for one of the plaintiffs named in the lawsuit didn’t immediately respond to WORLD’s request for comment on the agreement.

What’s this about? Last year, a Norfolk Southern train derailed near the town and released thousands of pounds of hazardous materials into the environment. Authorities ordered a temporary evacuation of the area. Just last week, the U.S. Environmental Protection Agency said in a report that wastewater at the site didn’t contain contaminants and was no longer treated as hazardous.

What’s in this settlement agreement? The agreement offers residents within 20 miles of the derailment site funds to address potential adverse impacts, which they can use at their discretion. It also compensates individuals within 10 miles of the site for any past, present, or future health injuries due to the derailment.

In addition to the settlement agreement, the company said it has spent $104 million in community assistance to East Palestine and surrounding communities. It has also spent millions of dollars more on upgrading the infrastructure to provide drinking water to the area. The company has also touted its efforts to boost home values in the area, residents’ healthcare needs, and protect drinking water.

A court has not yet approved the settlement agreement. It would not be an admission of liability or previous wrongdoing, the company said. The agreement is expected to come before the U.S. District Court for the Northern District of Ohio later this month.

Dig deeper: Read Carolina Lumetta’s report in The Stew about how East Palestine residents found themselves with plenty of water after the disaster but a mistrust of those telling them to drink it.