(Source: Freight Waves, March 18, 2023)
A law firm specializing in stockholder rights is filing a class-action lawsuit against Norfolk Southern for pursuing precision scheduled railroading (PSR) and making operational adjustments such as longer trains and headcount reductions. The fallout from the Feb. 3 derailment of an NS train in East Palestine, Ohio, has also led to falling stock prices for NS, according to the firm. The law firm argues that operational changes under PSR led to the derailment, and the derailment has put pressure on stock prices. The firm also said NS’ efforts to reduce operating expenses resulted in less spending on safety training, technology and equipment.
Full story: Freight Waves