Ok, so the article buries a lot of the context here. To clarify: plaintiffs can 100% sue the city for this under tort law (I believe the clean water act, but there’s probably other causes of action). This particular case was about suing the city officials in their personal capacity. So making those individuals pay, instead of/in addition to the city. Government officials are generally protected under qualified immunity. One exception to qualified immunity is 42 USC 1983: deprivation of rights under color of law. But that requires them to prove that these officials violated some constitutional right, beyond just some statute.
The victims can sue the city/state. They might already be doing so in parallel. And honestly that’s the only way to be made whole: these city officials don’t have the tens of millions that would be required to compensate victims. This is more about holding government officials individually accountable.