The Law Offices of Frank R. Cruz Announces Investigation of Norfolk Southern Corporation (NSC) on Behalf of Investors
The Law Offices of Frank R. Cruz announces an investigation of Norfolk Southern Corporation ("Norfolk Southern" or the "Company") (NYSE: NSC) on behalf of investors concerning the Company's possible violations of federal securities laws.
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On February 3, 2023, after the market closed, a Norfolk Southern Railway Company ("NSR") 149-car general merchandise freight train operated by three Norfolk Southern personnel derailed after a wheel bearing overheated and failed in East Palestine, Ohio, leaving behind a "mangled and charred mass of boxcars and flames." The train was not classified as a hazardous material train, but was carrying several hazardous materials that subsequently ignited, causing damage to non-derailed railcars. On February 5, Ohio Governor Mike DeWine ordered the evacuation of those within a one-by-two mile area near the derailment due to 115,580 gallons of vinyl chloride in five of the derailed cars. The following day, on February 6, responders engaged in a controlled detonation and burn of the vinyl chloride, exposing surrounding areas to massive volumes of chemicals, including residential neighborhoods only 1,000 feet from the accident. Reports cited thousands of dead fish, chemical slicks in the water, and chemical odors around the site.
On this news, Norfolk Southern's stock price fell $5.66, or 2.2%, to close at $246.46 per share on February 6, 2023.
Then, on February 8, 2023, Governor DeWine stated that Norfolk Southern "created the problem" and that it was "their liability," asserting that the Company "ought to pay for it." Upon returning to their homes after evacuation orders were lifted, many residents reported hazardous air quality and other health and environmental concerns.
On this news, Norfolk Southern's stock price fell $7.64, or 3.1%, to close at $238.98 per share on February 9, 2023.
On February 13, 2023, the EPA concluded that Norfolk Southern may be responsible for the cleanup costs of the derailment site or the costs incurred by the EPA area cleanups. On this news, Norfolk Southern's stock price fell $7.33, or 3%, over the next two trading days, to close at $235.28 per share on February 14, 2023.
Then, on February 23, 2023, the National Transportation Safety Board ("NTSB") issued a preliminary report on the derailment, stating it was 100% preventable. And on March 7, 2023, the NTSB announced that it had opened a special investigation into safety practices at Norfolk Southern because the Company had suffered five significant accidents since December 2021, three of which resulted in Company employee deaths.
On March 14, 2023, Ohio Attorney General Dave Yost filed a complaint against Norfolk Southern alleging trespass, nuisance, negligence, open dumping, and water and discharge violations in connection with a series of Norfolk Southern train derailments.
On March 15, 2023, Norfolk Southern's stock price fell to a low of less than $203 per share - 19% below the price prior to the East Palestine train derailment, thereby injuring investors.
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If you purchased Norfolk Southern securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
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SOURCE: Law Offices of Frank R. Cruz
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz, 310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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