Randall Burkholder
Managing Director and Head of Settlement Administration
New York
Columbia Gas Settlement: A Complex Multi-Community Administration
Discover how Kroll administered a $143 million Columbia Gas settlement across diverse communities, distributing over $111 million to thousands of claimants through multilingual, community-focused solutions. Read more.
In Re: Columbia Gas Cases, Superior Court of Massachusetts, Civil Action No. 1877CV01343G
The Challenge
The Challenge
On September 13, 2018, a devastating natural gas explosion rocked three Massachusetts communities - Lawrence, Andover, and North Andover - causing significant personal injury, property damage, and business interruption. Columbia Gas of Massachusetts established a $143 million settlement fund to compensate affected residents and businesses. Columbia Gas denies legal responsibility for these losses.
The challenge was particularly complex due to the diverse socioeconomic makeup of the affected communities:
- Lawrence: A predominantly Spanish-speaking community (71%) with a 22% poverty rate and average household income of $44,000
- Andover and North Andover: Affluent communities with average household incomes over $200,000 and primarily English-speaking residents
- Many residents were forced to relocate to neighboring communities
- The affected population included a significant immigrant population from the Dominican Republic, Vietnam, and Cambodia
These demographic variations required a highly customized approach to ensure all affected parties could easily access and understand the claims process.
Kroll's Solution
Kroll developed a comprehensive, multi-faceted settlement administration program that addressed the unique needs of each community:
Direct Notice Campaign
- Distributed bilingual notice packages to 50,500 residential and 41,500 business addresses
- Implemented a second notice round to 49,500 addresses when the deadline was extended
- Distributed flyers to community groups and throughout the class area
Multimedia Outreach
- Aired 537 television commercials in English and Spanish across multiple networks
- Broadcast 393 radio spots in both languages across various stations
- Published print ads in four local newspapers
- Implemented targeted social media campaigns on Facebook, Instagram, and Twitter
- Deployed geographically-focused online display ads
Local Presence and Community Engagement
- Established a centrally-located claim center in Andover
- Conducted six town hall meetings
- Organized three claim fairs with over 30 bilingual stations
- Maintained partnerships with local politicians and nonprofit groups
Customized Claims Processing
- Developed a point-based allocation system for residential claims
- Implemented manual review process for commercial claims
- Created multilingual website and claim filing capabilities
- Operated a bilingual contact center
- Conducted thorough verification of over 10,000 proofs of residency
Supplemental Distribution
- Initial Distribution: Over $91 million distributed to residential claimants
- 2022 Supplemental Distribution:
- Distributed $11,533,389.75 to 11,901 eligible claimants
- Funds derived from uncashed checks from original distribution
- 2024 Supplemental Distribution:
- Distributed $1,003,361.22 to 11,608 eligible claimants
- Funds derived from uncashed checks from 2022 distribution
- Additional $120,057.49 distributed to cy pres recipients
The Impact
The Impact
The settlement administration program achieved remarkable results
- Successfully processed and validated claims from thousands of affected residents and businesses
- Distributed approximately $11.4 million to 500 commercial claimants
- Distributed over $100 million to over 10,000 residential claimants
- Assisted an average of 30 class members daily at the local claim center
- Helped over 1,000 class members during the Claim Fairs
- Earned recognition as "the most far-reaching and comprehensive notice program" by plaintiff's attorney John Roddy
The program demonstrated Kroll's ability to design and execute a highly customized settlement administration solution that effectively served a diverse community while maintaining the integrity of the claims process. Through careful consideration of cultural, linguistic, and socioeconomic factors, Kroll ensured equitable access to compensation for all affected parties.
Settlement Administration
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