Class Action Settlement Agreement
$600 Million Settlement Underscores Norfolk Southern’s Commitment to Making it Right for East Palestine and Surrounding Communities
In March 2023, Norfolk Southern made commitments to address three long-term concerns of residents: drinking water, home values, and healthcare. To date, long-term programs have been implemented to address drinking water and home value assurance, all in addition to investments supporting community enhancements, first responders, schools, parks, and businesses.
Earlier this month, Norfolk Southern announced that it reached a $600 million agreement in principle to resolve the consolidated East Palestine class action lawsuit, resolving all 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. The parties have now reduced that agreement to writing, executing a comprehensive settlement agreement today (April 26, 2024).
This marks another promise kept to make it right for the people of East Palestine and the surrounding communities. If approved by the court, this comprehensive settlement will provide significant monetary relief to individuals and will help qualifying local businesses continue to rebuild and grow.
This settlement will fairly and adequately compensate individuals and qualifying businesses impacted by the derailment.
What does the $600 million settlement agreement include?
The agreement is designed to provide finality and flexibility for settlement class members, which includes individuals and businesses.
Households and businesses within a 20-mile radius from the derailment 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.
When can class members expect to be compensated?
Subject to final court approval, payments to class members under the settlement could begin as soon as the end of this year.
The actual allocations and payments to households, businesses, and individuals will be determined by court-appointed class counsel. We anticipate that class members will soon receive contact information for a settlement administrator to whom they can direct any questions and information regarding the settlement, and they can also contact class counsel.
Frequently Asked Questions
- This $600 million settlement is designed to address and resolve all class action claims within a 20-mile radius of the derailment site, and, for those residents who choose to participate, personal injury claims within a 10-mile radius of the derailment site.
- It provides significant monetary relief to individuals and helps qualifying businesses continue to rebuild and grow.
- This resolution was the product of extensive negotiations with court-appointed class counsel and with the expert assistance of former federal district judge Layn Phillips, a nationally renowned neutral mediator.
- Generally, all persons and businesses within a 20-mile radius from the derailment are covered by the settlement.
- Individual allocations and payments will be determined by court-appointed class counsel. These payments will be based on several factors, including proximity to the derailment site and the number of people in the household.
- Class members can contact class counsel with questions concerning the eligibility, and we anticipate that class members will soon receive contact information for a settlement administrator to whom they can also direct any questions.
- Please contact class counsel with any eligibility questions.
- Subject to final court approval, payments to class members under the settlement could begin by the end of this year.
- Households 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.
- From the beginning, Norfolk Southern has worked with key stakeholders to make it right. We remain committed to helping the community of East Palestine recover and thrive, no matter how long it takes.
- In addition to this settlement, Norfolk Southern has made contributions including:
- More than $105 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. Learn more.