Norfolk Southern has agreed to a $22 million settlement with East Palestine, Ohio, to resolve all claims from the town stemming from a fiery train derailment in 2023.
The settlement recognizes that Norfolk Southern has already made $13.5 million in payments to East Palestine since the derailment to fund vehicles and equipment for police and firefighters, upgrades to the town’s water treatment plant, and renovations to its train depot. The railroad also reaffirmed its commitment to devote $25 million to improvements to East Palestine City Park.
In February 2023, 38 cars of a Norfolk Southern train — 11 of which were carrying hazardous materials — derailed in the town, spilling millions of pounds of dangerous chemicals into the surrounding air and water, and leading to a toxic fire that lasted days. A June 2024 investigation from the National Transportation Safety Board faulted Norfolk Southern for its decision to attempt a “vent and burn” exercise to incinerate the chemicals pouring from the train cars. In the months following the derailment, East Palestine residents reported a range of health problems, including swollen lymph nodes, chest heaviness and a burning sensation in their eyes.
The railroad has agreed to several other hefty payouts over the last two years, including $600 million for a class-action settlement in April 2024, $310 million to settle other claims and investigations in May 2024, and an additional $780 million for environmental response efforts. A handful of other individual businesses and government agencies have pending lawsuits against Norfolk Southern as well.
