Question:
When can I expect to receive more information about the establishment of the proposed settlement trusts?
Answer:
On Dec. 14, 2001, the board voted to begin the process of establishing two settlement trusts for shareholders. Establishment of these trusts will take time and is dependent in part on a "private letter ruling" from the Internal Revenue Service confirming the tax treatment of the settlement trusts. Once this process is completed (which is anticipated to be sometime in the fall of 2002) shareholders can expect to receive detailed information concerning the settlement trusts in advance of a shareholder vote.
Question:
What is the status of the elders' benefit program?
Answer:
On May 1, 2001, the federal district court for the District of Alaska ruled that CIRI's Elders' Benefit Program was legal, and dismissed a lawsuit that had been filed by Emil Notti, James Grotha, Glen Kerr, Sam Pedro, and Ella Ring as proposed class action representatives. The plaintiffs appealed the court's decision.
The plaintiffs argued, among other things, that the law prohibits CIRI from making distributions to elders, which were not given to every other shareholder on a per-share basis. CIRI argued that the Alaska Native Claims Settlement Act of 1971 expressly permitted such payments. The court agreed with CIRI, and dismissed the plaintiffs' claims on the merits. The plaintiffs have appealed the ruling.
CIRI asked for, and was granted, an expedited oral argument in the matter,
which was held
on March 5, 2002. A decision from the 9th Circuit is expected sometime
in the next six months or so.
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