NEW YORK (Reuters) – A federal judge on Thursday dismissed a lawsuit accusing Norfolk Southern of causing hundreds of millions of dollars of losses for bondholders by concealing safety risks prior to the February 2023 derailment in East Palestine, Ohio of a train carrying hazardous chemicals.
U.S. District Judge Lewis Kaplan in Manhattan found no proof the railroad’s statements in offering materials about its focus on safety were false, or to support the bondholders’ claim that Norfolk Southern was “cutting corners” and sacrificing safety for profits.
(Reporting by Jonathan Stempel in New York; Editing by Chris Reese)
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