Norfolk Southern, a prominent U.S. railroad operator, is set to pay a hefty $600 million to resolve a class action lawsuit.

The lawsuit was filed in response to a train derailment in East Palestine, Ohio, in February 2023, which led to a spillage of harmful chemicals.

The company's decision and related court documents confirm this development.

The tentative agreement, which awaits court endorsement, is designed to address claims from the city's residents and businesses, as well as those from affected neighboring communities. The lawyers who initiated the action against Norfolk Southern stated in a joint declaration that the settlement would also compensate for "past, present, and future personal injuries resulting from exposure to the chemicals involved."

The incident, which involved the train catching fire and releasing over a million gallons of hazardous materials and pollutants, has raised serious questions about the safety of US railroads.

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Jayne Conroy, a leading attorney for the class, described the proposed settlement as "much larger than any derailment settlement in the United States." The agreement aims to settle all class action claims within a 20-mile radius of the derailment site and, for participating residents, personal injury claims within a 10-mile radius, as per court documents.

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Conroy approximates that nearly 100,000 class members, including up to 25,000 residents living within 10 miles and approximately 72,000 residing within 20 miles of the crash site, will be eligible for funds from the settlement.

Despite the settlement, Norfolk Southern has not admitted to any liability or wrongdoing. Several details, such as establishing an allocation formula and streamlining the claims process and fund distribution, are yet to be finalized. The lawyers opposing Norfolk Southern aim to distribute initial payments by the end of 2024.

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Claims will take into account factors such as proximity to the derailment, household membership, duration of displacement, and exposure to contaminants. Last year, Norfolk Southern agreed to compensate homeowners in East Palestine, Ohio, who were forced to sell their properties at a depreciated value due to the incident.

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In addition to the class action, Norfolk Southern is also facing lawsuits from shareholders, the state of Ohio, and the Justice Department. In May 2023, a Senate committee approved bipartisan rail safety legislation tightening regulations on trains carrying explosive substances like the Norfolk Southern-operated train. However, further action has been delayed.