Norfolk Southern Corporation (NYSE: NSC)

This lawsuit is for anyone who acquired securities in Norfolk Southern Corporation (NYSE: NSC) from October 28, 2020 through March 3, 2023.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by telling investors that the Company adhered to applicable safety standards when, in fact, the Company was prioritizing profits over safety by, among other things, using longer, heavier trains staffed by fewer personnel, which led to increased train derailments and a materially increased risk of future derailmentsls.

On February 3, 2023, after the market closed, a Norfolk Southern Railway Company (“NSR”) 149-car general merchandise freight train operated by three Norfolk Southern personnel derailed after a wheel bearing overheated and failed in East Palestine, Ohio, leaving behind a “mangled and charred mass of boxcars and flames.” The train was not classified as a hazardous material train, but was carrying several hazardous materials that subsequently ignited, causing damage to non-derailed railcars. On February 5, Ohio Governor Mike DeWine ordered the evacuation of those within a one-by-two mile area near the derailment due to 115,580 gallons of vinyl chloride in five of the derailed cars. The following day, on February 6, responders engaged in a controlled detonation and burn of the vinyl chloride, exposing surrounding areas to massive volumes of chemicals, including residential neighborhoods only 1,000 feet from the accident. Reports cited thousands of dead fish, chemical slicks in the water, and chemical odors around the site. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on February 8, 2023, Governor DeWine stated that Norfolk Southern “created the problem” and that it was “their liability,” asserting that the Company “ought to pay for it.” Upon returning to their homes after evacuation orders were lifted, many residents reported hazardous air quality and other health and environmental concerns. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on February 13, 2023, the EPA concluded that Norfolk Southern may be responsible for the cleanup costs of the derailment site or the costs incurred by the EPA area cleanups. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. On February 15, 2023, reports emerged that Ohio Attorney General Dave Yost was considering taking legal action against Norfolk Southern over the derailment. In a letter to the Company, he noted: “The pollution, which continues to contaminate the area around East Palestine, created a nuisance, damage to natural resources and caused environment harm.” On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Finlly, on Saturday, March 4, 2023, another Norfolk Southern freight train derailed near Springfield, Ohio. About 20 of the train’s 212 cars derailed but officials said no hazardous materials spilled and no injuries were reported, further revealing the extent of Norfolk Southern’s safety lapses. Before the market opened on Monday, March 6, 2023, the Company announced a 6- part plan to improve operational safety that included, inter alia, adding about 200 temperature sensors along its tracks where existing sensors are at least 15 miles apart, reviewing the temperature levels that set off alarms for train crews, and adding more acoustic sensors that analyze vibrations for potential. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Norfolk Southern Corporation (NYSE: NSC) from October 28, 2020 through March 3, 2023 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.