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Background
On October 8, 2017, a series of wildfires, known as the "2017 Northern California wildfires", spread throughout Northern California. The 21 major fires burned over 245,000 acres across Napa, Sonoma, Butte, Humboldt, Mendocino, Lake, Nevada, and Yuba Counties, including areas surrounding Yuba City, according to the Cal Fire California Statewide Fire Summary. These fires damaged over 8,900 structures and resulted in 44 fatalities.
On November 8, 2018, the region faced another catastrophic event with the outbreak of the "2018 Camp fire" near Paradise in Butte County. The fire consumed 153,336 acres, destroyed an estimated 18,804 structures, and resulted in 85 fatalities, according to the Cal Fire California Statewide Fire Summary.
A major energy utility company was subject to numerous claims in connection with the wildfires, facing litigation from individual plaintiffs, insurance subrogation claim holders, and various federal, state and local entities. A multi-billion-dollar Subrogation Trust was created as part of their Chapter 11 Plan of Reorganization to compensate insurance carriers for indemnity payments made in connection with wildfire-related damage.
Ankura's Involvement
Ankura was appointed Trustee and end-to-end administrator, providing services to compensate insurance carriers and other claim holders for subrogation claims related to property damage from the 2017 Northern California wildfires and the 2018 Camp fire. Collaborating with the Trust Advisory Board, Ankura managed a $11 billion qualified settlement fund established under the Chapter 11 bankruptcy plan to compensate insurance carriers for wildfire-related claims. In this capacity, Ankura:
- Established the settlement fund entity and managed comprehensive financial operations, including collaboration with financial institutions on reporting requirements, account reconciliation, distribution processing, specialized financial reporting, audit preparation with CPA firm assistance, and tax return and reporting services.
- Designed a robust claims process and conducted data analysis and reporting for pre-petition and post-petition claim data.
- Calculated quarterly payment percentages and distribution amounts for eligible claims and performed actuarial forecasting to determine necessary Trust reserves for future claims.
Value Delivered
Received tens of thousands of claims from hundreds of insurance carriers. Per the Trust Agreement, Ankura reviewed claims for eligibility using our customized claims management platform.
Distributed billions in settlement proceeds to insurers and other stakeholders with valid claims.
Developed review criteria to identify data inconsistencies in claim submissions, thereby reducing inaccuracies and saving millions of dollars.
Managed the distribution of data for tens of thousands of wildfire claims in compliance with court-ordered regulations.
About Mass Torts & Settlement Administration
At Ankura, we deliver tailored solutions to meet the complex demands of mass tort and class action litigation. With deep experience in some of the largest cases in history, we provide expert consulting to all parties involved. Our multidisciplinary team ensures accurate, defensible damage assessments and operationalizes complex settlements with efficiency and equity. We also leverage proprietary technology, including our ClaimsOnline platform, to help clients navigate even the most challenging litigation landscapes.
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