Norfolk Must Battle Lawsuit After Ohio Derailment Stock Fall (1)

Norfolk Southern Corp. will defend against allegations it overhyped its safety commitment surrounding the 2023 toxic train derailment in East Palestine, Ohio, a federal judge ruled.

Investor groups sufficiently alleged that the rail operator and former executives knew or recklessly disregarded that it misled investors while dismantling its “safety infrastructure in an all-out pursuit of profits,” said Judge Steven D. Grimberg in denying Norfolk Southern and current and former executives’ motion to dismiss on Monday. The US District Court for the Northern District of Georgia judge said he was hesitant to declare safety statements non-actionable because of “substantial allegations” ...