EAST PALESTINE — Kroll Settlement Administration’s (KSA) request to defend itself after being stripped of its responsibilities to oversee the allocation and distribution of award from last year’s $600 settlement between Norfolk Southern and individuals who resided or worked within 20 miles of the derailment fell on deaf ears, as federal judge Benita Pearson denied a motion filed by Kroll Monday in Youngstown’s U.S. District Court. 

Pearson ruled the motion “stricken as unsolicited and unnecessary to the court’s ruling.”

Kroll was abruptly suspended and terminated as the settlement administrator by Pearson at the request of class co-counsel who accused the New York-based company of overpaying some claims. Epiq was appointed as the replacement settlement administrator. 

In a motion filed by attorneys Christopher J. Joyce and Scott M. Ahmad on behalf of the ousted settlement administration firm, Kroll’s counsel stated that “notice and an opportunity to be heard” before a disputed issue is decided “remain the most basic requirements of due process” and charged Kroll was dismissed without warning and that “class counsel never advised KSA it was seeking the order [to remove Kroll], despite KSA being in regular communication with class counsel about numerous important settlement administration issues.” The motion further claimed Kroll had no idea it was being removed until Pearson’s order hit the docket. 

That order, the motion continued, “was published without any corresponding motion or initiating document and “appears to reference nonpublic, untested testimony and allegations against KSA that KSA does not have access to (and thus KSA cannot fully evaluate or respond to).”

Meanwhile, Pearson’s latest ruling said Kroll may be held accountable for failing to follow the court’s order in regards to determining and paying out award amounts.

“Kroll may subsequently explain its position in response to the anticipated motion to show cause why it should not be held in contempt for violating the court’s prior order approving and adopting the Plan of Distribution and Supplement to the Plan of Distribution,” Pearson wrote.

The Plan of Distribution was included in the settlement when Pearson signed off on it by giving final approval in August of last year.

In its denied motion, Kroll, who had already billed class counsel over $2 million for services and had anticipated billing up to $14.6 million more, insists it is “diligently transitioning the settlement administration services as directed by the court.”

“KSA is regretful that class counsel and the court elected to terminate KSA, wishes the settlement administration had proceeded more expeditiously, and wishes the very best for the East Palestine community,” it added. 

Kroll had come under fire for a painfully protracted process of distributing personal injury payments that were promised by class counsel to be paid within 30 days of final approval. That was over nine months ago. 

Class members also voiced frustration over missing paperwork and documents that Kroll called “deficiencies.” Some residents claimed they had made numerous trips to the claim center set up and run by Kroll on Rebecca Street in East Palestine to provide the same document over and over again. Others said Kroll had no record of them filing a claim at all, despite filing at the center with the assistance of Kroll employees. Last week, first responders and seemingly anyone who filed a claim based on having worked in the village received letters denying the claims outright. Those denied also included lifelong East Palestine residents who were determined by Kroll to not have been “within 10 miles of the derailment between Feb. 3, 2023 and April 26, 2024” despite having provided utility bills, leases and deeds. Others were denied on the basis that they did not respond to letters notifying residents of deficiencies in their claims — letters residents say they never received.

Those who received denial letters had until June 24 to appeal to Kroll but with Kroll off the case, residents were stumped as to what to do.  According to eastpalestinetrainsettlement.com – a website set up by Kroll and now under Epiq’s control — that deadline has been suspended. 

“If you received a denial notice, the deadline will be extended and a response is no longer due by June 24, 2025. At this time, we do not have a new date your response is due by,” the website said. “You should use this period to review the documentation you have submitted and be prepared to submit your appeal documents when a new deadline is published. As part of this transition, there may be delays and we appreciate your patience.”

The website also announced that the toll-free phone number, email, and mailing address are now operated by Epiq.  The email address (info@eastpalestinetrainsettlement.com) and telephone number (833-425-3400 ) remain the same, but the mailing address has changed to P.O. Box 6820, Portland, OR 97228-6820. 

As for the claims center on Rebecca Street, the website said it is “now permanently closed and Epiq will notify people directly about plans for distributing checks and to set up calls for any canceled appointments.”

Last week, claim questions were to be directed to Epiq at 855-369-5685.