Lac du Flambeau Band of Lake Superior Chippewa reaches settlement
February 20, 2017 9:26 AM
by Robert Mann
A long running legal dispute in Wisconsin has been resolved after a settlement has been reached between the Lac du Flambeau Band of Lake Superior Chippewa and several parties. This comes after years of litigation between the tribe, business firms and lawyers involved in a 2008 bond issue.
The litigation arose out of $50 million dollar bond issue by a tribal corporation in 2008. The tribe was refinancing debt and also investing in other economic diversification. The tribe had maintained there were irregularities in the financing of the transaction and the failure of a casino boat project in Florida that had put the tribe in an economically depressed position.
A press release said the tribe must pay $27 million to settle the legal action, with the final amount to be paid totaling about $75 million. Other parties are paying the remainder of the monetary settlement, according to local media reports.
The tribe paid more than $20 million on the bonds, however, payments stopped in 2009 when attempts to restructure the bonds were unsuccessful. Litigation continued over seven years between the parties in state and federal courts.