Norfolk Southern Securities Claims Should Proceed, Judge Says

Norfolk Southern Corp. should continue to face an investor lawsuit alleging that the company failed to disclose increased risk-taking practices prior to a 2023 train derailment in East Palestine, Ohio, a federal magistrate judge said in a recommendation.

Plaintiffs Ohio Carpenters’ Pension Fund and City of Pontiac Reestablished Employees’ Retirement System—on behalf of a putative class of purchasers of senior notes issued by Norfolk Southern—have adequately alleged that the company violated sections 11 and 15 of the Securities Act of 1933, US Magistrate Judge Sarah L. Cave of the US District Court for the Southern District of New York said ...