EAST PALESTINE, Ohio – Living on Alice Street, less than half a mile from the site of the February 2023 Norfolk Southern train derailment, Megan Parker is growing weary of waiting for her portion of the $600 million settlement.
Parker, one of many residents still waiting, said she was given assurances three times this year as to when she would be notified about her share. So far, she hasn’t received a letter indicating her settlement amount.
On Wednesday, it was announced that Kroll Settlement Administration LLC, the company ordered to issue the settlement checks, has been replaced.
Northern District Court Judge Benita Y. Pearson appointed Epiq Class Action & Claims Solutions Inc. to oversee the settlement distribution. She said there were concerns that Kroll didn’t follow the “point system” put in place to determine fair distribution. Pearson also found sufficient reason to believe Kroll miscalculated some distribution payments, leading to some possible overpayments, and failed to adhere to the distinction between those living within the village of East Palestine and the larger 44413 ZIP code area.
“I’m kind of in shock and, honestly, I’m so incredibly fed up that I want to do something, right?” Parker said. “There isn’t anything I can do, not a darn thing.”
But Parker did go onto Facebook to ask some valid questions. She wants to know how the overpaid money will be recovered and how many millions of dollars Kroll was paid for a job it failed to do. She also wants to know who will pay Epiq, and if there will be any money left to distribute to people, like her, who lived near the derailment and had their lives disrupted.
Simmons Hanly Conroy, a law firm that is part of the court-appointed class counsel group, issued a statement to the media Wednesday night, reacting to the court order.
“We are devastated that our hard work to achieve a $600M settlement remains unfulfilled,” read the joint statement from Jayne Conroy, Beth Graham and Seth Katz. “We will continue to do everything we can do for the community to get voluntary exposure funds out to the hands of the citizens in the correct amounts. In addition to receiving numerous complaints about the timing of payments, we were recently alerted to the fact that there were errors in Kroll’s calculations. As a result, we believe we have no choice but to audit these calculations. The court saw fit to replace Kroll as Administrator.”
Pearson ordered a comprehensive review and audit of the settlement payments. Her order gave Kroll one day to meet with Epiq to begin transfer of the settlement administration and to begin redirecting inquiries about settlements to Epiq, including changing the contact information on the distribution website. Additionally, control of the website, email and toll-free number, as well as access to the fund where the remaining settlement money sits, is to be transferred within five days. An inventory of all data materials for the claims filed is to happen within seven days, with complete transfer of the materials within 10 days.
Parker said when she hears these deadlines, all she really hears is, “Delay, delay, delay.”
Parker said that after the Feb. 3, 2023, derailment, she lost paid time off from work because she couldn’t work from the home she was evacuated from.
She said she knows people who lived farther away from the derailment who have already received money.
“What were they thinking starting with people who were 15 miles out?” Parker said, adding she has assurances from Graham, who responded to some of her concerns. She said Graham has indicated that when settlements resume, they will start with residents within 2 miles of the derailment, and those in the community who received overpayments will not be expected to repay it.
A spokesperson for the class counsel attorneys said Thursday that attorneys intend to ask the court to order reimbursement from Kroll for the cost of the audit, as well as restitution for overpayments. But those who received overpayments will not be asked to pay it back, the spokesperson said. After a review, Kroll may have to refund some of the money it billed for doing the work.
The attorneys expect the new administrator to quickly resume making payments later this summer.
Parker said she just hopes that when the situation is resolved, she can finally receive and use money to pay mounting vet bills and go back to school this fall.
For now, she remains “skeptical but hopeful.”