UPDATE
Following yesterday’s announcement by the National Safety Transportation Board concerning the conclusions of its investigation into the fiery train derailment in East Palestine, Ohio, on February 3, 2023, that spewed toxic chemicals into the surrounding communities, we are renewing our own investigation into whether the officers and directors of Norfolk Southern Corporation breached their fiduciary duties under Delaware law in connection with the derailment.
On June 25, 2024, the National Transportation Safety Board (NTSB) said that a defective wheel bearing that failed and overheated caused the derailment of a freight train operated by Norfolk Southern Corporation (NSC) in East Palestine, Ohio, on February 3, 2023, resulting in the release of hazardous materials into the surrounding communities.
NTSB investigators said the decision by the local incident commander three days later to conduct a vent and burn of the contents of the tank cars carrying vinyl chloride monomer was based on incomplete and misleading information provided by NSC officials and contractors. The vent and burn was not necessary to prevent a tank car failure, NTSB investigators found.
According to the Federal Railroad Administration, a vent and burn procedure should be a last resort, used when a tank car is about to fail. Norfolk Southern rejected three other removal methods and began planning for a vent and burn shortly after the derailment, investigators found.
Contributing to the severity of the hazardous materials release was the continued use of DOT-111 tank cars to transport flammable liquids and other hazardous materials.
During the derailment, three DOT-111 cars were mechanically breached, releasing flammable and combustible liquids that ignited. The fire spread and exposed other tank cars to heat, leading to a decision to conduct vent-and-burn action on five tank cars carrying vinyl chloride. The vent and burn resulted in a mushroom cloud that towered over the town and surrounding area.
The DOT-111 tank car is being phased out of flammable liquids service because of its long record of inadequate mechanical and thermal crashworthiness and propensity to release lading in a derailment. This unacceptable safety record is why the NTSB is calling for an accelerated phaseout of DOT-111 tank cars in hazmat service.
Overheated wheel bearings are a common cause of rail accidents. Hot bearing detectors are part of system intended to warn crews to stop the train before the hot bearing can cause a derailment.
The crew did not receive a hot bearing warning until the train passed over a detector in East Palestine, when the overheated bearing was about to cause its axle to fail. The crew began to slow the train using dynamic braking, but it was too late. A total of 38 rail cars derailed, including 11 rail tank cars carrying hazardous materials.
The difficulty of accurately measuring temperature inside the bearing, combined with NSC’s standard operating procedures and the spacing between detectors, meant the crew did not receive adequate warning to stop the train before the derailment, NTSB investigators said.
“Unfortunately, some have sought to minimize the wide-ranging impacts of this derailment, pointing to the fact that there were no fatalities or injuries. For this, we are certainly grateful, but the absence of a fatality or injury doesn’t mean the presence of safety,” said NTSB Chair Jennifer Homendy. “Our agency doesn’t wait for death or injury to occur. Instead, we objectively analyze the facts and evidence to make recommendations that, if implemented, will ensure this never happens again. Thanks to the hard work of our world-class investigators, we now have a roadmap to do just that.”
ORIGINAL ANNOUNCEMENT
We are investigating whether the officers and directors of Norfolk Southern Corporation (NYSE: NSC) (“NSC”) breached their fiduciary duties under Delaware law in connection with the fiery train derailment in East Palestine, Ohio, on February 3, 2023, that spewed toxic chemicals into the surrounding communities.
On April 9, 2024, NSC agreed to a $600 million settlement that will pay class action claims within a 20-mile radius of the accident and personal injury claims within a 10-mile radius.
On May 23, 2024, the Department of Justice and Environmental Protection Agency announced a $310 million settlement with NSC to pay for past and future cleanup costs, enhanced rail safety, health monitoring, and other costs and penalties related to the derailment.
If you are a long-term NSC shareholder and have questions about your legal rights and options in connection with our investigation, please contact us to discuss your options at no charge by completing and submitting the form below.