Norfolk Southern Update: Company to Pay $600 Million Class Action Settlement While Officers and Directors Face Investigation for Potential Wrongdoing Regarding February 2023 Train Derailment

Schubert Jonckheer & Kolbe LLP is investigating potential claims on behalf of shareholders of Norfolk Southern Corporation (NYSE: NSC) relating to the February 3, 2023, train derailment in East Palestine, Ohio and potential wrongdoing among certain of Norfolk Southern’s officers and directors.

The February 2023 Norfolk Southern train derailment released toxins and other combustible liquids, led to a controlled burn of toxic chemicals, and prompted the evacuation of residents from the surrounding area. Upon returning to their homes, residents reported hazardous air quality and other health and environmental concerns. At the time, Ohio Governor Mike DeWine stated that Norfolk Southern “created the problem” and that it was “their liability” and “ought to pay for it.”

On April 9, 2024, Norfolk Southern announced that it agreed in principle to pay $600 million to settle a class action lawsuit brought by individuals and businesses located within a 20-mile radius of the derailment site. Other litigation and regulatory investigations, including by the U.S. Environmental Protection Agency, U.S. Department of Justice, Ohio Attorney General, National Transportation Safety Board, and Federal Rail Administration, and a securities fraud class action, remain pending. These matters have exposed the company to potentially massive additional liabilities, penalties, and fines.

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