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

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.

‘‘

The settlement’s notice and outreach program is by far the most far-reaching and comprehensive notice program I have seen over the course of my career.

John Roddy. Partner, Baily Glasser LLP (Plaintiff’s Attorney, In Re: Columbia Gas Cases)

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

Columbia Gas Settlement: A Complex Multi-Community Administration Success

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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.