01:09 PM EDT, 09/09/2024 (MT Newswires) -- Shares of Norfolk Southern ( NSC ) edged higher intraday Monday after the company said late Sunday it opened an independent investigation into Chief Executive Alan Shaw regarding alleged misconduct.

The train operator said that the alleged misconduct would be inconsistent with the company's code of ethics. Shares of Norfolk Southern ( NSC ) were up 1.6% in Monday afternoon trade.

Norfolk Southern's ( NSC ) board has retained a law firm to investigate the allegations, and is "committed to a complete and reliable examination of all pertinent facts." The company said employees are able to anonymously report concerns.

"To ensure a fair investigation, the company and the board cannot comment further until the investigation is complete," Norfolk said. It did not respond to a request from MT Newswires seeking a comment from Shaw himself.

CNBC reported Sunday that the company's board was looking into allegations that Shaw was involved in an inappropriate workplace relationship.

Norfolk Southern ( NSC ), the company responsible for the Eastern Ohio train derailment in 2023, reduced its full-year revenue growth guidance in July to 1% from 3% despite reporting stronger-than-expected fiscal second-quarter adjusted earnings per share.

The reduced outlook was due to "market cost currents" and adverse mix headwinds, Chief Marketing Officer Ed Elkins told analysts on a conference call in July, according to a Capital IQ transcript.

In May, activist shareholder Ancora secured three seats on the Norfolk Southern ( NSC ) board. Ancora had nominated seven director candidates and was looking to oust Shaw.

Price: 253.50, Change: +3.49, Percent Change: +1.40