Eastern Railroad Discussion > NS settles class action on East Palestine OH derail

Barron's reports that Norfolk Southern has reached a $600 million ($2.26 per share) proposed deal to settle class action litigation on the East Palestine OH derailment. Homeowners and businesses had sued after the February 2023 derailment and fire.

The umbrella settlement will allow people living within 10 miles of the fire to claim for additional damages, the article says.  The judge overseeing the case needs to approve.

Paywall possible

https://www.barrons.com/articles/norfolk-southern-settlement-train-derailment-56c941a9?mod=hp_LEAD_5

IMO, NS (and their hedge fund masters) are very lucky that number isn't significantly higher.

pennsy3750 Wrote:
-------------------------------------------------------
> IMO, NS (and their hedge fund masters) are very
> lucky that number isn't significantly higher.

Agree, but before it is all said and done, I think NS will be hit with a lot of other liabilities.

 

ts1457 Wrote:
-------------------------------------------------------
> pennsy3750 Wrote:
> --------------------------------------------------
> -----
> > IMO, NS (and their hedge fund masters) are very
> > lucky that number isn't significantly higher.
>
> Agree, but before it is all said and done, I think
> NS will be hit with a lot of other liabilities.
>
>  

But TS1457 you claimed just several months ago NS on this very website NS was probably going to go bankrupt and disappear into the abyss…. Do you still hold to this claim?

The only reason this particular derailment is so expensive and keeps getting attention is because of all the false and misleading information and statements being spread across social media and so called news outlets with their “experts”. This derailment is no where close as serious or detrimental as the Graniteville, SC. was. Of course this is only my opinion.

Posted from iPhone

JOHNY5ALIVE Wrote:
-------------------------------------------------------
> The only reason this particular derailment is so
> expensive and keeps getting attention is because
> of all the false and misleading information and
> statements being spread across social media and so
> called news outlets with their “experts”. This
> derailment is no where close as serious or
> detrimental as the Graniteville, SC. was. Of
> course this is only my opinion.

Probably won't bankrupt NS, but the liabilities will continue as we see the long term effects of dioxin poisoning.

Give it a few years and see which one of us analyzed the situation correctly.

JOHNY5ALIVE Wrote:
-------------------------------------------------------
> The only reason this particular derailment is so
> expensive and keeps getting attention is because
> of all the false and misleading information and
> statements being spread across social media and so
> called news outlets with their “experts”.

More false and misleading information, but at least you did say it was your opinion. The reason it's so expensive is because that's the price of generational derailments these days, and the money paid is the bare minimun they agreed to pay at this time trying to avoid much bigger court imposed settlements. Something they surely would not have done if they could get away with anything less. Nobody hands over that much money when they think they can pay less, and as others have noted this will likely be just the start of the liability payments. Yes, everything is more scrutinized these days, all the more reason to have your ducks in a row, so to speak...

JG



Edited 1 time(s). Last edit at 04/09/24 12:02 by jgilmore.

jgilmore Wrote:
-------------------------------------------------------
> More false and misleading information, but at
> least you did say it was your opinion. The reason
> it's so expensive is because that's the price of
> generational derailments these days, and the money
> paid is the bare minimun they agreed to pay at
> this time trying to avoid much bigger court
> imposed settlements. Something they surely would
> not have done if they could get away with anything
> less. Nobody hands over that much money when they
> think they can pay less, and as others have noted
> this will likely be just the start of the
> liability payments. Yes, everything is more
> scrutinized these days, all the more reason to
> have your ducks in a row, so to speak...

Between the equipment, lading, and property damage, the cleanup, and the class action settlement, I think NS is into it for a few billion, more than what the Cincinnati Southern cost them.

If NS is found to have made any material misrepresentations, all bets are off.

When NS discloses its first Q earnings in the next two weeks or so, there will undoubtedly be a discussion of amounts paid out, and how much more NS "expects" to pay going forward.  It's an item on the balance sheet, so the number is supposed to be a realistic projection.

These numbers aren't a big surprise, but the aggregate of the Cincinnati Southern deal and this settlement will be a dent. Even with some insurance, etc.

Here's the news release in which NS describes the proposed settlement.

https://norfolksouthern.mediaroom.com/2024-04-09-Norfolk-Southern-reaches-agreement-in-principle-to-settle-East-Palestine-derailment-class-action

$600 million was a bargain, still would have been cheaper to have the proper manpower, the eyes and ears, with the boots on the ground, doing a REAL proper inspections.in 25 years, i have encountered many fake, falsified brake test and inspections, and i do not work for NS.

jgilmore Wrote:
-------------------------------------------------------
> JOHNY5ALIVE Wrote:
> --------------------------------------------------
> -----
> > The only reason this particular derailment is
> so
> > expensive and keeps getting attention is
> because
> > of all the false and misleading information and
> > statements being spread across social media and
> so
> > called news outlets with their “experts”.
>
> More false and misleading information, but at
> least you did say it was your opinion. The reason
> it's so expensive is because that's the price of
> generational derailments these days, and the money
> paid is the bare minimun they agreed to pay at
> this time trying to avoid much bigger court
> imposed settlements. Something they surely would
> not have done if they could get away with anything
> less. Nobody hands over that much money when they
> think they can pay less, and as others have noted
> this will likely be just the start of the
> liability payments. Yes, everything is more
> scrutinized these days, all the more reason to
> have your ducks in a row, so to speak...
>
> JG


lol, your post is false and misleading as well, as it is just your opinion.

Posted from iPhone

The 4/24 earnings call with NS officials should be interesting.  I'm sure the remaining issues with EPA litigation and clean up costs will be center stage.