Norfolk Southern Investors Fail to Get Derailment Suit Revived

Norfolk Southern Corp. investors didn’t adequately allege the rail carrier materially misled them about its safety practices in advance of a 2023 train derailment in East Palestine, Ohio, the Second Circuit said Friday.

Seven Norfolk Southern statements that the investors challenged are inactionable or not false, the US Court of Appeals for the Second Circuit said in an unsigned, unpublished opinion affirming the case’s dismissal. The investors pointed to nothing else that would have imposed “a freestanding duty to disclose more information about Norfolk Southern’s safety practices” on the company and its executives, the appeals court said.

• The investors alleged ...