EAST PALESTINE — Kroll Settlement Administration has agreed to pay $17.25 million to the settlement class to resolve a dispute with class counsel over its handling of personal injury payments from the $600 million settlement between Norfolk Southern and residents affected by the 2023 East Palestine train derailment.

U.S. District Judge Benita Pearson ordered the payment, which is due by Dec. 26, according to court documents filed Monday. The funds will be deposited into a qualified settlement fund and allocated to the Voluntary Exposure Supplement Program, also known as the personal injury fund, for the benefit of participating class members.

The agreement resolves a show-cause motion seeking to hold Kroll in contempt for allegedly failing to comply with court orders during its administration of the settlement. Following a hearing on Dec. 5, class counsel and Kroll reached a resolution that ended the show-cause process against the former settlement administrator.

Under the terms of the stipulation, Kroll will be released from all claims and obligations related to the case, and the show-cause proceedings will be dismissed with prejudice. The court approved the agreement, providing finality for Kroll in the matter.

The payment follows months of litigation over Kroll’s administration of the personal injury portion of the settlement. Class counsel accused Kroll of calculation errors, improper denial of claims, overpaying some claimants, and failing to follow the court-approved Plan of Distribution. Pearson removed Kroll as settlement administrator in June and ordered an independent audit, replacing the firm with Epiq.

Class counsel alleged Kroll delayed payouts and applied unauthorized multipliers instead of using the allocation point system approved by the court. Kroll acknowledged approximately $4.8 million in overpayments caused by calculation errors but said the mistakes were inadvertent and offered to reimburse the settlement fund.

Kroll denied allegations of contempt, arguing the settlement did not require a pro rata distribution and warning that the $129 million personal injury allocation was insufficient to cover more than 30,000 claims. The company said it repeatedly alerted class counsel to the potential funding shortfall and pointed to safeguards in the settlement, including fund reallocation provisions and a $10 million holdback. Kroll also previously rejected demands to return nearly $9 million in fees, calling the request punitive.

The personal injury component of the settlement allowed individuals living or working within 10 miles of the derailment site to receive up to $25,000 each. Those payments were promised within 30 days of final approval, which Pearson granted in September 2024, but disbursements have been slow. Direct payments for property damage of up to $70,000 per household were put on hold by multiple appeals. Earlier this year, nearly 150 residents filed motions to withdraw from the settlement, alleging class counsel misled them by failing to disclose expert findings related to potential long-term health risks.