Update: Cobell v. Salazar Indian Trust Settlement Check Delays Explained

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A landmark $3.4 billion class action settlement reached in 2009 between the United States Government and nearly 500,000 Native Americans is still being delayed by a number of setbacks that have resulted in nearly 75,000 Class Members not receiving payments. The explanation, according to a recent letter sent by plaintiff attorneys, is nearly the exact same reason the Cobell v. Salazar Indian trust class action lawsuit was filed in the first place: poor record keeping by the U.S. government.

Since 1996, lead plaintiff Elouis Cobell and others have argued that the government failed to properly manage the Native American Indian trust accounts they were holding for the population as far back as the Dawes Act of 1887. This affected a reported 500,000 Native Americans and resulted in a $3.4 billion settlement with the federal government in December 2009 that was later approved by a federal judge in 2011.

The first round of Cobell v. Salazar settlement checks were mailed to more 400,000 Class Members in December 2012, but an estimated 65,000 Members were listed as “whereabouts unknown” or without contact information in the records furnished by the Department of Interior. The Claims Administrator announced that the second round of payments would be mailed in early 2014, but checks are still missing.

In a letter from Class Counsel posted to the Settlement Website www.IndianTrust.com, Class Members were told: “Concerns have recently been expressed that the second payments under the Cobell settlement – the Trust Administration payments – have not yet been distributed. Please be assured that the Court, the Claims Administrator and Class Counsel are taking all measures necessary to make sure those payments are distributed as quickly as possible consistent with the terms of the settlement.”

The letter states that they’ve been able to locate over half of the 65,000 individuals on the government’s “whereabouts unknown” list. “Thousands more continue to contact us each month. This has been a serious deficiency that has plagued the individual Indian trust since its inception. We are committed to make sure that it does not continue.”

The letter continues: “Once again, please be assured that we are doing everything we can to make sure all class members receive their payments as soon as possible. We understand the frustrations experienced over the timing of payments. Many beneficiaries are in great need of these funds and we will continue to do everything we can to make sure the payments go out as soon as possible.”

Class Members with questions about the Cobell v. Salazar Indian trust settlement are encouraged to email Class Counsel at beneficiaryline@kilpatricktownsend.com or call 866-383-6554.

The Native Americans are represented by class action lawsuit lawyers David Smith and Bill Dorris of Kilpatrick Townsend & Stockton LLP.

The Native American Indian Trust Class Action Lawsuit is Elouis Pepion Cobell et al. v. Ken Salazar et al., Case No. 96-cv-01285, in the U.S. District Court for the District of Columbia.

UPDATE 1: According to the Settlement Administrator, the final round of payments from the Indian Trust settlement could be made in early Fall 2014.

UPDATE 2: A federal judge approved the distribution of payments to more than 15,000 Class Members whose records were missing from the Department of Interior. The first checks were mailed Sept. 15, 2014. Learn more.

UPDATE 3: If you were an Indian Trust beneficiary, you may be entitled to payment from a $3.4 billion class action settlement. More than 30,000 individuals could qualify for benefits from the Indian Trust settlement. Update your contact information and file a claim by Nov. 27, 2017 to get cash from this settlement.