Wells Fargo Bank has dropped its lawsuit over a 2012 $250 million refinance loan to the Chukchansi Gold Casino and Resort, which is owned by the Chukchansi Tribe of California.
The defendant in the case, the Chukchansi Economic Development Authority, released a statement about the settlement two weeks ago. The Authority and the other defendant, the Chukchansi Finance Company, were accused of mishandling funds that were supposed to be used to pay the debt.
The refinance loan came with a requirement that the tribe create an account that would be used to park funds that would be used to repay the loan and pay tribal member distributions, among other functions. Funds left over were supposed to be used to repay the loan.
Wells Fargo later accused the tribe of stockpiling the cash rather than using any surplus to pay the bank twice a year.
For the settlement to go into force requires court approval.
