Despite Ancora's push for leadership changes, shareholders re-elected Shaw and three Ancora-backed board nominees in May.

Norfolk Southern Corporation NSC Board launched an investigation into allegations that CEO Alan Shaw violated the company's Code of Ethics and policies.

Norfolk Southern stated that it upholds high standards for all employees. Allegations of misconduct are thoroughly investigated per the company's Code of Conduct, which also provides an anonymous Ethics & Compliance Hotline for reporting concerns.

Norfolk Southern's board is examining allegations that Shaw engaged in an inappropriate workplace relationship, CNBC reported, citing three people familiar with the matter.

NSC's Audit Committee hired a law firm to conduct an independent investigation and will refrain from further comment until it is complete.

In May, Norfolk Southern shareholders voted to retain CEO Alan Shaw despite activist investor Ancora's push for a management overhaul.

Ancora criticized Norfolk's performance and response to an Ohio derailment and sought executive changes, but Shaw and other directors were re-elected alongside three Ancora nominees.

Ancora won three board seats but failed to remove CEO Alan Shaw. Ancora proposed replacing Shaw with former UPS COO Jim Barber and appointing Jamie Boychuk as COO, reported Reuters.

Price Action: NSC shares closed lower by 1.09% at $250.01 on Friday.

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