Eastern Railroad Discussion > Shareholders sue NS over Ohio derailment

The group that NS management is most likely to listen to has spoken. And they're not happy.

Https://www.reuters.com/world/us/norfolk-southern-shareholders-sue-over-ohio-derailment-2023-03-17/

Another waste case in our judicial system. 

All NS will have to do is play every earnings call since 2018 where shareholders were asking the company why they were not going MORE in terms of PSR...

JETRR Wrote:
-------------------------------------------------------
> Another waste case in our judicial system. 

IDK who's dumber...the mgmt that told potential investors that they could run a railroad without employees, or the investors who are stupid enough to believe it.    I hope they all lose. Greed and stupidity should not be rewarded.

It's not Wall St, it's the Pa Bucks County Employee's retirement fund.  And they specifically mentioned PSR as the cause.  Could be the crack in the door.
john

Curious as to how many shares this one shareholder group actually holds?

cjvrr Wrote:
-------------------------------------------------------
> Curious as to how many shares this one shareholder
> group actually holds?

The filing says they hold 1,500 shares at the time of filing, and the buyer relied on false and misleading promises based on the PSR methodology. They are seeking class action status based on the facts, which they say include a climate a increased risk taking, etc based on PSR.

Lackawanna484 Wrote:
-------------------------------------------------------
> cjvrr Wrote:
> --------------------------------------------------
> -----
> > Curious as to how many shares this one
> shareholder
> > group actually holds?
>
> The filing says they hold 1,500 shares at the time
> of filing, 

So they are a minnow in the ocean.   Good luck to them.

I had 1500 shares....closer to 3000 shares but I sold them...because not confident they can maintain profitability. 

It will end up costing them more in legal fees than they even own at 1500 shares.

Remember it took a big hedge fund block at UP to force Fritz out.   This appears to be a pretty small holding, comparatively speaking, unless more sign on, which they may.

The group that took Fritz had a $1.6 BILLION stake in UP.   That's what it takes.
https://fortune.com/2023/02/27/union-pacific-ceo-lance-fritz-quits-soroban-capital-partners-hedge-fund-pressure/

randgust Wrote:
-------------------------------------------------------
> Remember it took a big hedge fund block at UP to
> force Fritz out.   This appears to be a pretty
> small holding, comparatively speaking, unless more
> sign on, which they may.
>
> The group that took Fritz had a $1.6 BILLION stake
> in UP.   That's what it takes.
> https://fortune.com/2023/02/27/union-pacific-ceo-l
> ance-fritz-quits-soroban-capital-partners-hedge-fu
> nd-pressure/

To be clear, the Bucks County initiative is NOT a proxy action. It's a lawsuit against company management seeking class action status.  I don't have a clue on how much leeway the judge will give Bucks County to argue that the railroad's application of PSR puts profits over safety, but it should be interesting to see the arguments. Some of the arguments floated so far (allowing 40 seconds for each car inspection, for example, versus seven minutes in the past) seem like they could have weight.

All because of the fear of a few false 'stop and inspect', NS defector setting let that defective bearing pass Salem when it gained 65 F in 10 miles and was at 103 F.  NS has a 115 F comparison to the other bearing threshold when it should have about 50 F limit. It should have put out a alarm to stop when any bearing was above 88 F. that day.
 



Edited 2 time(s). Last edit at 03/20/23 15:37 by PlyWoody.

so they can sue themselves?