Bloomberg Law
March 17, 2023, 12:10 AM

Norfolk Southern Sued Over Stock Drop After Ohio Derailment

Christopher Brown
Christopher Brown
Staff Correspondent

Rail operator Norfolk Southern Corp. and its top executives are facing a securities class action in the wake of last month’s train derailment in East Palestine, Ohio, alleging the company misled investors by ignoring the safety risks of the railroad’s increasing use of longer, heavier trains staffed by fewer workers.

The Bucks County Employees Retirement System alleged the rail operator was driven by a focus on short-term profits and risk-taking at the expense of safety, and that its reassurances to investors that it remained committed to safety was “materially false and/or misleading.”

At issue in the complaint, filed Thursday ...