The Lac du Flambeau Band of Lake Superior Chippewa of Iron County, Wisconsin, reached a settlement of all litigation between the tribe, Saybrook Tax Exempt Investors, Stifel Nicolaus & Company and the law firms of Godfrey & Kahn, S.C. and Denton’s US LLP. The tribe agreed to pay million to settle the legal action involving a million 2008 bond issue and the other parties will pay the balance of the million final settlement.
The tribe claimed there were irregularities in the financing of the bond issue by a tribal corporation. The tribe was refinancing debt and investing in other economic diversification, including a failed casino boat project in Florida. The tribe paid more than $20 million on the bonds, and stopped payments following unsuccessful attempts to restructure them. The case continued over seven years in state and federal courts, and a trial was set to begin last month in Waukesha.
Tribal President William Wildcat Sr. said the $27 million dollar payment to settle all litigation puts an end to the matter. “Throughout this journey, we remained committed to reaffirming our sound financial footing and restoring our good standing in the financial community. We were far too trusting in our business interactions when this began nearly 10 years ago. We learned from this lengthy, complex and expensive process. And, we put in place safeguards to ensure this never happens again.”
The 4,000-member Lac du Flambeau Band of Lake Superior Chippewa owns and operates Lake of the Torches Resort Casino in Lac du Flambeau, Wisconsin.
