A federal judge on Thursday dismissed a lawsuit accusing Norfolk Southern of causing hundreds of millions of dollars of losses for bondholders by concealing safety risks prior to the February 2023 derailment in East Palestine, Ohio of a train carrying hazardous chemicals.
U.S. District Judge Lewis Kaplan in Manhattan found no proof to support bondholder claims that Norfolk Southern’s statements in offering materials about its focus on safety were false, or that it was “cutting corners” on safety in pursuit of profits.
Kaplan found no duty to disclose that the use of “Precision Scheduled Railroading,”