Norfolk Southern Corporation announced Tuesday that it reached a $600 million settlement in a class action lawsuit in response to the train derailment in East Palestine, Ohio, last year.
The railroad company said in a press release that if the court approves the settlement, all class action lawsuits within a 20-mile radius of the derailment and all personal injury claims within a 10-mile radius of the derailment will be resolved.
On February 3, 2023, 50 train carriages, 10 of which were carrying hazardous materials, derailed in East Palestine. Hundreds of residents evacuated due to a controlled burn of noxious vinyl chloride that Norfolk Southern carried out on February 6 to stop an explosion.
The company said the $600 million in settlement funds, if approved by the courts, can be used by individuals and businesses “in any manner they see fit to address potential adverse impacts from the derailment.”
Tax Day is next week. Ohioans in East Palestine are facing tax bills they shouldn't have to pay.
We helped write the bipartisan tax deal to give these Ohioans urgently-needed tax relief. Politicians in the need Senate to stop stalling — we must pass this bipartisan bill now. pic.twitter.com/bogPc8NyFq
— Sherrod Brown (@SenSherrodBrown) April 9, 2024
Ohio U.S. Senator Sherrod Brown (D-OH) acknowledged the settlement but raised concerns about the taxes recipients of the funds would have to pay.
“People in East Palestine are livid for a reason. Norfolk Southern rightly provided money to almost everybody in East Palestine and now they’re going to get taxed on it. Put it simply: you should not have to pay that tax bill. You didn’t know it was coming. I’ve written a tax relief bill. It’s bipartisan, we’ve got Republicans and Democrats to sit down at the table and do this. I’ve listened to people in East Palestine…If we don’t do this, people are going to get hit with this bill. There’s no excuse for this and I’m not giving up until we fix this,” Brown said in a video message posted to X.
Pennsylvania State Senator Doug Mastriano (R-District 33), who chairs the Pennsylvania Senate Veterans Affairs & Emergency Preparedness Committee, said Tuesday’s settlement is a “good start” for those affected by the derailment.
Less than 2 weeks after our hearing near East Palestine, NS is announcing a $600 million settlement for health care needs, property restoration, and compensation for any net business loss for individuals within 10 miles of the derailment. This is a good start:…
— Senator Doug Mastriano (@SenMastriano) April 9, 2024
The Pennsylvania Senate Veterans Affairs & Emergency Preparedness Committee held a public hearing last month on the Ohio-Pennsylvania border surrounding the challenges residents in Pennsylvania affected by the train derailment are still facing one year after the derailment.
“Less than 2 weeks after our hearing near East Palestine, NS is announcing a $600 million settlement for health care needs, property restoration, and compensation for any net business loss for individuals within 10 miles of the derailment. This is a good start,” Mastriano said.
However, the work doesn’t end here. Congress must pass the RAIL Act to improve rail safety and hold negligent rail corporations accountable.
— Rep. Emilia Strong Sykes (@RepEmiliaSykes) April 9, 2024
Meanwhile, Ohio U.S. Representative Emilia Sykes (D-OH-13) said the settlement funds will provide residents with the “necessary resources to rebuild their community,” however, added, “Congress must pass the RAIL Act to improve rail safety and hold negligent rail corporations accountable.”
Former Congressman Bill Johnson introduced the RAIL Act (Reducing Accidents In Locomotives Act) last year in response to the train derailment.
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Kaitlin Housler is a reporter at The Ohio Star and The Star News Network. Follow Kaitlin on X / Twitter.
Photo “Sherrod Brown” by Sherrod Brown. Photo “Doug Mastriano” by Doug Mastriano. Background Photo “East Palestine Train Derailment Aftermath” by EPA / Michael Regan.
