NEWTOWN, Pa., March 17, 2023 (GLOBE NEWSWIRE) — The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers of Norfolk Southern Corporation (“Norfolk” or the “Company”) (NYSE: NSC) common stock between October 28, 2020 and March 3, 2023 (the “Class Period”).
Norfolk investors may move the U.S. District Court for the Northern District of California to appoint them as lead plaintiff, no later than May 15, 2023. Current holders of Norfolk stock may pursue corporate governance reforms. Please contact Edelson Lechtzin LLP at 1-844-696-7492 to discuss your investment losses, or by e-mail at [email protected]. A copy of the class action complaint can be viewed HERE.
Background on Norfolk Southern Corporation
Norfolk is a rail transportation company, which owns Norfolk Southern Railway Company – a major freight railroad. The Company is incorporated in the Commonwealth of Virginia. The Company and its subsidiaries are engaged in the rail transportation of raw materials, intermediate products and finished goods in the United States.
The Securities Fraud Claims
In October 2018, Norfolk implemented a strategy known as Precision Scheduled Railroading (“PSR”). PSR is associated with hyper-efficient operational changes to increase revenues and decrease costs. PSR mandates trains to transport larger and heavier roads with fewer workers in less time.
The Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Norfolk’s use of PSR had led to the Company suffering increased train derailments and a risk of future derailments, (ii) the adoption of PSR increased risk taking at the expense of reasonable safety precautions due to the Company’s short term focus on profits, (iii) the use of PSR made the Company more susceptible to train derailments, (iv) the Company’s extensive lobbying efforts had undermined its ability to provide safe and efficient rail transportation services; and (v) that the adoption of PSR enabled the Company to likely be responsible for accidents that would cause serious economic injury and bodily harm.
On February 3, 2023, one of Norfolk’s trains derailed in East Palestine, Ohio near the Ohio Pennsylvania border. That train, which had 2 locomotives, 149 railcars, and 1 distributed power locomotive, had only 3 personnel on board. The derailed cars included 11 that carried hazardous materials which subsequently ignited. On news of this derailment, the price of Norfolk stock fell $5.66 a share on February 6, 2023, causing significant shareholder losses. Subsequently on February 9, 2023, the stock declined $7.64 a share, inflicting additional shareholder losses.
On February 13, 2023, the Environmental Protection Agency concluded that the Company may be responsible for the cleanup costs causing the stock price to decline again, down an additional $7.33 per share. On March 4, 2023, another Norfolk train derailed near Springfield, Ohio further highlighting the Company’s safety lapses. On this news, the price of Norfolk stock dropped $13.21 per share on March 6 and 7, 2023.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: [email protected] or [email protected]
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
This press release may be considered Attorney Advertising in some jurisdictions. No class has been certified in this case, so you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. Your ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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