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Judge rejects Kroll's attempt to explain after removal from East Palestine settlement case

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A federal judge has turned down a request from Kroll Settlement Administration, the company recently removed from overseeing payments to East Palestine train derailment victims, to explain its side of the story and secure a guarantee that it would have a chance to defend itself if future accusations arose.

U.S. District Judge Benita Pearson stated in an order that Kroll will have an opportunity to present its case later, specifically if a motion is filed to hold the company accountable for possibly not following earlier court orders regarding the payout plan.

Earlier this month, Judge Pearson replaced Kroll with Epiq Class Action & Claims Solutions Inc. to manage the $600 million settlement fund for derailment victims. The judge cited concerns that Kroll may have miscalculated payments, potentially leading to some victims receiving too much money at the expense of others.

In its filing dated June 23, Kroll expressed its cooperation in handing over responsibilities to the new administrator and voiced regret about being terminated. The company asked for "notice and an opportunity to be heard" should any new claims be made against it, pointing out that its removal order came without any prior formal complaint it could address. Kroll also claimed it did not have access to or the ability to fully review some of the allegations mentioned in the order.

However, Judge Pearson's order rejected Kroll's request. She also removed Kroll's proposed explanation from the court file, calling it "unnecessary."

The judge's decision allows the derailment victims' attorneys to file a motion seeking to hold Kroll in contempt within 14 days after an independent auditor completes a review of Kroll's past payment calculations. The audit aims to pinpoint any errors and their financial impact.

Victim attorneys had previously voiced significant disappointment, stating that their "hard work" on the settlement remained "unfulfilled." They cited numerous complaints about payment delays and calculation mistakes as reasons for pushing for Kroll's removal.


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