Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, today announced that it has commenced an investigation on behalf of Norfolk Southern Corporation (“Norfolk Southern” or the “Company”) (NYSE: NSC) investors concerning the Company’s possible violations of the federal securities laws.
If you suffered a loss on your Norfolk Southern investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Norfolk-Southern-Corporation/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
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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Whistleblower Notice: Persons with non-public information regarding Norfolk Southern should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email email@example.com.
Glancy Prongay & Murray LLP is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. ISS Securities Class Action Services has consistently ranked GPM in its annual SCAS Top 50 Report. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements. With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct including cases involving financial restatements, internal control weaknesses, earnings management, fraudulent earnings guidance and forward looking statements, auditor misconduct, insider trading, violations of FDA regulations, actions resulting in FDA and DOJ investigations, and many other forms of corporate misconduct. GPM’s attorneys have worked on securities cases relating to nearly all industries and sectors in the financial markets, including, energy, consumer discretionary, consumer staples, real estate and REITs, financial, insurance, information technology, health care, biotech, cryptocurrency, medical devices, and many more. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.
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Glancy Prongay & Murray LLP, Los Angeles
Charles H. Linehan, 310-201-9150 or 888-773-9224
1925 Century Park East, Suite 2100
Los Angeles, CA 90067