A business owner with companies near where a Norfolk Southern train derailed and caught fire in February has sued the Atlanta-based railroad for $500 million, saying most of his eastern Ohio companies have remained closed and he hasn’t been able to reach a financial settlement with the railroad.
Edwin Wang filed his federal lawsuit Tuesday. It comes amid government lawsuits against Norfolk Southern and a class action case on behalf of residents who have complained about the derailment’s impact on East Palestine, Ohio.
Wang’s companies make specialized ceramic fiber insulation products for steel mills. The wholesale part of his business, CeramSource, was able to reopen last month in a new location just over the nearby Pennsylvania border. But contamination concerns and the costly equipment Wang can’t afford to replace have kept his other companies closed. Before the derailment spilled chemicals on his property, Wang’s companies employed close to 50 people and had plans to expand.
Norfolk Southern declined to comment on the lawsuit, but spokesman Thomas Crosson said the railroad is “actively supporting businesses in their recovery efforts.” That includes reaching confidential settlements with 11 businesses and offering $1.8 million to 55 others.
The railroad’s CEO has also apologized for the derailment and pledged to make things right. As part of that, the railroad has committed nearly $102 million to the community, and has been working to clean up the mess left behind by the derailment. The EPA is monitoring those efforts.
