July 23, 2025

Settlement Fund administrator resigns, lawsuit in process

To Our Clients—

We are reaching out with an update on the YDC litigation process and Settlement Fund hearings.

As you may have heard already, John Broderick just resigned from his role as Settlement Fund administrator after the State passed a new law removing independence and neutrality from the claims process. Assistant Administrator Diane Nicolosi has also resigned from her position. Her resignation was effective immediately, and she has already concluded her work for the fund.

We are disheartened by the State’s problematic changes to the Settlement Fund that prompted Broderick’s resignation. These changes:

• Make the Settlement Fund administrator a politically appointed position, meaning the governor can hire and fire the administrator at any time for any reason or no reason at all, and
• Give the attorney general the ability to reject an award if he thinks it is too high or otherwise disagrees with it.

Our team at Nixon Peabody and Rilee & Associates has filed a class-action lawsuit seeking to permanently block these changes from taking effect. The court has scheduled a hearing in our lawsuit on August 12, and we’re confident the court will agree that the State should act in good faith and provide people who entered the Settlement Fund what was promised—a fair and binding process.

If you have submitted a claim to the Settlement Fund, we encourage you to remain patient and carry on with your case while we wait for our lawsuit to work its way through the courts. Right now, there is no action for you to take, and we are hopeful that our efforts will stop these changes from becoming permanent.

In the meantime, we are closely tracking other developments. Please be sure to check Case Status regularly for updates. You can also call the main Nixon Peabody phone number (603-628-4060) and ask to be connected to the YDC Client Update line to listen to a recorded update. Here’s what we know right now:

Litigation

All trials in cases filed in Rockingham County are currently paused. The New Hampshire Supreme Court paused those trials until David Meehan’s case is resolved at the Supreme Court. We disagree with the decision to pause the trials and are asking the court to reconsider.

During the pause, the discovery phase of the cases—the part of the case where the plaintiff and defendant exchange documents and information about their claims and defenses—will continue to move forward. Even if the Supreme Court keeps the pause in place, we will be ready to start trials again as soon as the pause is lifted.

Settlement Fund

• Administrator Broderick will officially step down on July 31. Prior to that date, he plans to issue final decisions on claims pending for evaluation before July 1. We have reached out to all clients within that window who can expect a decision by the end of the month. After July 31, the Settlement Fund process will be partially paused until a new claims administrator is selected.
• The Settlement Fund changes described above are now in place—the attorney general has the power to veto Settlement Fund awards, and the governor has the authority to hire/fire the Settlement Fund administrator.
• Our class-action lawsuit is moving along. We had our first hearing on the lawsuit last week, largely determining scheduling and logistics. Our next hearing will take place on August 12. At that hearing, we will argue that the governor and attorney general should be prohibited from implementing the changes to the Settlement Fund described above. We will update you as the litigation progresses.
• The new State budget allocates $20 million to the Settlement Fund, significantly less than prior funding cycles. The Settlement Fund administrator is required to request additional funds from the Joint Legislative Fiscal Committee if it appears there will be a shortfall in the fund.

Third-party contractor cases/Claims filed in Merrimack County

• The cases involving placements at privately operated contractor facilities (such as camps or group homes) filed in Merrimack County are, so far, unaffected by the scheduling or Settlement Fund changes.
• Many of these cases are in the discovery phase—the part of the case where the plaintiff and defendant exchange documents and information about their claims and defenses. As we enter the discovery phase, we will need your continued cooperation to respond to requests from the defendants.

In summary

• Settlement Fund Administrator John Broderick resigned and will leave on July 31, after which the governor will likely appoint a new administrator. Claims processing may be paused during that transition period.
• Assistant Administrator Nicolosi also resigned from her role and has already left the position.
• Trials have been paused in Rockingham County for the foreseeable future, though discovery continues. Cases in Merrimack County have not yet been paused and are moving forward with discovery.
• Changes to the Settlement Fund, allowing the attorney general to veto the administrator’s decisions and the governor to hire and fire the administrator, have been signed into law. We are challenging those changes in court, and our next hearing is on August 12.
• Resolution proceedings are paused for now.
• There is nothing for you to do right now, and we will continue to update you.

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