Major Transportation Settlement Cases That Made History

Some of the largest legal payouts in recent American history have come out of the transportation sector, and the major transportation settlement cases of the last few years span freight rail, rideshare apps, airlines, trucking, and logistics. The dollar figures range from a few million to more than $600 million, and the underlying claims include environmental disasters, driver misclassification, securities fraud, disability and sex discrimination, consumer harm, and data breaches.

Norfolk Southern East Palestine Derailment

The February 3, 2023, Norfolk Southern derailment in East Palestine, Ohio, released hazardous chemicals, forced evacuations, and produced one of the largest transportation-related settlements on record.

A class action, In re East Palestine Train Derailment (Case No. 4:23-cv-00242), established a $600 million fund for affected individuals and businesses. The court granted final approval on September 27, 2024. The Sixth Circuit dismissed appeals in November 2025, and the U.S. Supreme Court denied certiorari on March 2, 2026, clearing the way for distributions.¹

The fund is subject to court-approved deductions of up to 27% ($162 million) for attorneys’ fees and up to 3% ($18 million) for administrative costs. What remains is split into direct household payments (keyed to proximity, household size, and displacement length), business loss payments, and personal injury payments for people who were within 10 miles of the derailment site. Household payments were expected to mail in June 2026, with business loss payments later in the year.¹

Separately, the U.S. Department of Justice reached a settlement with Norfolk Southern valued at more than $310 million. It covers an estimated $235 million in past and future environmental cleanup, a $15 million civil penalty for Clean Water Act violations, $25 million for a 20-year community health program providing medical monitoring and mental health services, and roughly $30 million for water monitoring and waterway remediation. Norfolk Southern has estimated that its total spending related to the derailment will exceed $1 billion.²

Uber and Lyft Driver Misclassification

Rideshare companies have paid hundreds of millions to resolve claims that they treated drivers as independent contractors in ways that shortchanged them on wages and benefits.

The New York State Attorney General secured a combined $328 million. Uber agreed to a $290 million fund for drivers who used the app in New York between November 2014 and May 2017, and Lyft agreed to $38 million for drivers active between October 2015 and July 2017. More than 100,000 drivers were eligible, and over 88,000 claims had been filed as of December 2024. Payments from the Uber settlement began mailing in August 2024, with the final claims deadline extended to March 31, 2025.³⁴ Both companies also agreed to provide current New York drivers with paid sick leave, minimum pay floors for trips outside New York City, in-app language support, and a formal appeals process for deactivations.

In Massachusetts, Uber and Lyft reached a separate $175 million settlement with the state attorney general in June 2024. Drivers kept their independent contractor status but gained a $32.50 per hour minimum, paid sick time, health insurance stipends for those working more than 15 hours per week, and up to $1 million in occupational accident coverage.⁵

New Jersey took its own action. A state Department of Labor audit found that Lyft misclassified more than 100,000 drivers between 2014 and 2017, resulting in unpaid contributions to unemployment, temporary disability, and family leave insurance funds. In August 2025, Lyft resolved the matter by paying $19.4 million in past due contributions, penalties, and interest.⁶

FedEx Ground Driver Classification

In Alexander v. FedEx Ground, nearly 2,000 California drivers alleged FedEx classified them as independent contractors to avoid paying overtime and covering work-related costs like uniforms and vehicles. A federal appeals court ruled the drivers were employees, pointing to FedEx’s control over schedules, vehicle specifications, and appearance standards. After more than a decade of litigation, FedEx agreed to a $226.5 million settlement, averaging over $100,000 per driver.⁷

Southwest Airlines 2022 Holiday Meltdown

A December 2022 winter storm triggered the cancellation of roughly 17,000 Southwest Airlines flights and stranded more than 2 million travelers. In December 2023, the Department of Transportation assessed a $140 million civil penalty, the largest ever against a U.S. airline at the time. Of that total, $35 million went to the U.S. Treasury, $72 million was credited toward a $90 million passenger compensation system requiring transferable $75 vouchers for significantly delayed travelers, and $33 million was credited for Rapid Reward points issued to affected passengers. Southwest had already provided over $600 million in refunds and reimbursements, bringing the total financial impact above $750 million.⁸

American Airlines Wheelchair Mishandling

In October 2024, the DOT assessed American Airlines a $50 million civil penalty for what it called “numerous serious violations” of disability protection laws between 2019 and 2023. Investigators found that the airline had failed to provide safe and dignified wheelchair assistance, injured passengers during transfers, and damaged or delayed the return of thousands of wheelchairs and scooters. One cited incident at Miami International Airport involved personnel captured on video dropping a wheelchair down a baggage ramp.⁹

Under the consent order, $25 million went to the U.S. Treasury and $25 million was credited toward wheelchair lifts at 24 or more airports, wheelchair movers at 43 or more airports, a systemwide tagging system, and compensation for affected passengers.⁹

Central Transport Hiring Discrimination

The Equal Employment Opportunity Commission reached a $5.5 million settlement with Central Transport, LLC, a Warren, Michigan-based trucking company, over allegations that it had systematically refused to hire qualified women as truck drivers for at least a decade. The EEOC’s investigation found that female applicants were subjected to different hiring procedures than men, that some terminals in Phoenix and El Paso hired no women drivers for years despite receiving applications, and that observers reported seeing women’s applications thrown in the trash. A dispatcher in Dunbar, West Virginia, told investigators he had been instructed by corporate not to hire women.¹⁰

Under the consent decree signed by Arizona Federal Judge John J. Tuchi, the money is split into 25% backpay and 75% compensatory damages for four original complainants and a class of qualified women denied employment. Central Transport also agreed to hire an outside consultant to review its hiring policies, appoint a monitor to report compliance to the EEOC, and provide anti-discrimination training to staff.¹¹

Roadrunner Transportation Securities Fraud

Roadrunner Transportation Systems, a publicly traded trucking and logistics company, agreed to a $20 million class action settlement after investors alleged the company overstated its profits by $66.5 million between 2011 and 2016. The fraud stemmed from weak internal controls compounded by the complexity of multiple acquisitions. The Public Employees Retirement System of Mississippi was lead plaintiff, representing shareholders who bought stock between March 2013 and January 2018. A federal judge in the Eastern District of Wisconsin approved the settlement, and distributions were made in April 2022.¹²¹³

The criminal fallout was significant. Former CFO Peter Armbruster was convicted in July 2021 on four federal counts, including securities fraud, misleading auditors, and keeping false records. He was sentenced to two years in federal prison and ordered to pay nearly $1.15 million in restitution. The SEC later barred him from practicing before the Commission.¹⁴¹⁵

New York Congestion Pricing

Not every major transportation settlement is a cash award. In 2024, the Riders Alliance, the Sierra Club, and the New York City-Environmental Justice Alliance sued over Governor Kathy Hochul’s “indefinite pause” of New York’s planned congestion pricing program, arguing it violated the state’s climate protection laws and the state constitution’s environmental rights provision. After a court denied the state’s motion to dismiss in September 2024, the parties reached a settlement requiring the state and the Metropolitan Transportation Authority to implement the program by January 5, 2025.¹⁶

The $9 base toll for vehicles entering Manhattan below 60th Street launched on schedule. In its first year, net revenue surpassed $562 million against a $500 million projection, traffic in the toll zone dropped 11% with 27 million fewer vehicles, state data showed a 22% reduction in air pollution and a 7% decrease in crashes, subway ridership rose over 5%, and bus ridership increased 7% to 8%.¹⁷¹⁸

PS Logistics Data Breach

A class action settlement in Walker v. P&S Transportation (Case No. 01-CV-2025-900187.00) addresses a February 2024 ransomware attack on P&S Transportation and its affiliate PS Logistics, in which cybercriminals accessed employee and driver data including Social Security numbers, driver’s license numbers, passport numbers, and medical information. Thousands of individuals were affected.¹⁹

Class members are eligible for one year of three-bureau credit monitoring with up to $1 million in identity theft insurance. They may also claim either reimbursement for documented out-of-pocket losses up to $4,000 or a flat $45 cash payment with no documentation. The claims deadline was May 18, 2026, with a final approval hearing scheduled for July 1, 2026, in Birmingham, Alabama.¹⁹

Knight-Swift Retirement Plan

Knight-Swift Transportation Holdings, one of the largest trucking companies in North America, agreed to a $3 million settlement over allegations that it breached its fiduciary duties under ERISA by maintaining excessive administrative fees and offering imprudent investment options in its employee retirement plan. The case, Hagins v. Knight-Swift (Case No. CV-22-01835-PHX-ROS), covers roughly 100,000 workers who participated in the plan between October 2016 and November 2025. A federal judge approved the settlement on May 14, 2026. Payments will be distributed automatically based on each participant’s average account balance during the class period, with no claim form required.²⁰²¹

Why Trucking Numbers Keep Climbing

Beyond negotiated settlements, jury awards in trucking cases have escalated sharply. Between 2010 and 2018, the average size of trucking verdicts over $1 million increased by 967%, from roughly $2.3 million to $22.3 million. From mid-2020 through early 2023, the average award climbed to $27.5 million.²²

Among the largest individual outcomes: a $247 million verdict against a trucking company after a van struck a tractor-trailer blocking a roadway, and a $101 million award following a collision involving a commercial driver who tested positive for drugs.²³ Common threads include negligent hiring and training, driver impairment, destruction of telematics evidence, and falsified driver logs.

Annual commercial truck insurance premiums for average-risk carriers have risen 35% to 40%, with small fleets most affected. The American Trucking Associations has described a resulting wave of carrier bankruptcies and diminished safety budgets as companies redirect funds toward insurance and legal costs. Premiums rose another 12.5% in 2023 alone.²⁴²⁵

Industry groups have pushed for state-level tort reform in response. Louisiana enacted its Civil Justice Reform Act of 2020, which allows defense attorneys to introduce seatbelt evidence, lowers the jury trial threshold, and ties medical damages to amounts actually paid rather than billed. Texas passed legislation targeting the “reptile theory” litigation strategy used by plaintiffs’ attorneys. West Virginia has advanced legislation to cap non-economic damages.²⁴²²

1
East Palestine Train Derailment Settlement. Settlement FAQ
2
U.S. Department of Justice. United States Reaches Over $310 Million Settlement With Norfolk Southern
3
New York State Attorney General. Lyft and Uber Settlement
4
New York State Attorney General. Attorney General James Urges Uber and Lyft Drivers to File Claims
5
Uber NYS AG Settlement. Uber NY AG Settlement Information
6
New Jersey Department of Labor. Lyft Payment Resolution
7
Leonard Carder LLP. Alexander v FedEx Ground
8
U.S. Department of Transportation. DOT Penalizes Southwest Airlines $140 Million for 2022 Holiday Meltdown
9
U.S. Department of Transportation. DOT Issues Landmark $50 Million Penalty Against American Airlines
10
U.S. Equal Employment Opportunity Commission. EEOC Reaches $5.5 Million Resolution With Central Transport
11
Trucking Dive. Central Transport Reaches $5.5M Settlement With EEOC
12
BizTimes Milwaukee. Roadrunner Transportation Reaches $20 Million Class Action Settlement
13
Roadrunner Settlement. Settlement Information
14
U.S. Department of Justice. Former Chief Financial Officer Sentenced to Two Years
15
U.S. Securities and Exchange Commission. Administrative Proceeding Against Peter R. Armbruster
16
Earthjustice. State Department of Transportation Agrees to Binding Obligation to Start Congestion Pricing
17
New York Post. MTA Nets $62M More Than Expected From Congestion Pricing
18
ABC7 New York. NYC Congestion Pricing Results a Year Later
19
Transportation Breach Settlement. Walker v P&S Transportation Settlement Notice
20
Trucking Dive. Court OKs $3M Payout in Knight-Swift Employee Retirement Case
21
Knight-Swift ERISA Settlement. Settlement FAQ
22
Marsh McLennan Agency. Nuclear Trucking Verdicts
23
Travelers. Multi-Million Dollar Vehicle Verdicts
24
American Trucking Associations. How Nuclear Verdicts Are Strangling Americas Trucking Industry
25
PrePass Alliance. Trucking and Litigation: The Growing Concern of Nuclear Verdicts