Complaint, Shawnee Tribe v. Mnuchin, No. 4:20-cv-00290 (N.D. Okla.), Doc. 2 (June 18, 2020)
Summary
A verified complaint for injunctive and declaratory relief filed in the U.S. District Court for the Northern District of Oklahoma on 06/18/20, Document 2 in Case 4:20-cv-00290-JED-FHM. Plaintiff The Shawnee Tribe, a federally recognized sovereign Indian nation, sues Steven T. Mnuchin and the Department of the Treasury, together with David Bernhardt and the Department of the Interior. The complaint cites 28 U.S.C. §§ 1331 and 1362 for jurisdiction and states that The Shawnee Tribe is located in Miami, Oklahoma. In its prayer, the Tribe seeks declarations about Treasury's handling of IHBG population data and the Population Award, and an injunction against distributing more of the reserved $679 million intended for Oklahoma tribes.
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Cite this document
“Complaint, Shawnee Tribe v. Mnuchin, No. 4:20-cv-00290 (N.D. Okla.), Doc. 2 (June 18, 2020).”
Original at storage.courtlistener.com. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/complaint-shawnee-tribe-v-mnuchin-no-4-20-cv-00290-n-d-okla-doc-2-june-d8a794c06d/
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Case 4:20-cv-00290-JED-FHM Document 2 Filed in USDC ND/OK on 06/18/20 Page 1 of 15
UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF OKLAHOMA
(1) THE SHAWNEE TRIBE, )
)
Plaintiff, )
)
v. ) Case No.
)
(1) STEVEN T. MNUCHIN, in his official capacity )
as Secretary of the United Stated Department of the )
Treasury; (2) UNITED STATES DEPARTMENT )
OF THE TREASURY; (3) DAVID BERNHARDT, )
in his official capacity as Secretary of the United )
States Department of the Interior; (4) UNITED )
STATES DEPARTMENT OF THE INTERIOR )
)
Defendants. )
VERIFIED COMPLAINT FOR
INJUNCTIVE AND DECLARATORY RELIEF
Plaintiff, The Shawnee Tribe, a federally recognized sovereign Indian nation, by and
through its counsel, states and alleges as follows:
JURISDICTION AND VENUE
1. The Court has jurisdiction over this action pursuant to 28 U.S.C. §§ 1331 and 1362.
The Shawnee Tribe, a federally recognized Tribal government, asserts civil claims arising under
the Constitution and laws of the United States, including the Administrative Procedures Act,
5 U.S.C. § 701 et seq.
2. Moreover, the allegations of the Complaint give rise to an actual controversy within
the meaning of 28 U.S.C. § 2201.
3. Venue is proper in this District pursuant to 28 U.S.C. § 1391(e) because this lawsuit
names an officer and agency of the United States, this action does not involve claims for real
property, and The Shawnee Tribe is located in Miami, Oklahoma.
Case 4:20-cv-00290-JED-FHM Document 2 Filed in USDC ND/OK on 06/18/20 Page 2 of 15
PARTIES
4. Plaintiff, The Shawnee Tribe, is a federally recognized Tribal government, which
provides essential governmental services to its nearly 3,000 enrolled citizens living on and
off-reservation. The Shawnee Tribe brings this action to assert and protect its own rights, and the
rights of its citizens.
5. Defendants, the United States Department of the Treasury (the “Treasury”) and
Steven T. Mnuchin (“Secretary Mnuchin”), who has been sued in his official capacity as the
Secretary of Treasury, were tasked with distributing funds pursuant to the Coronavirus Aid,
Relief, and Economic Security Act (“CARES Act”). Under the CARES Act, the Treasury and
Secretary Mnuchin were directed by Congress to consult with Tribal governments and the United
States Secretary of the Interior in order to determine each Tribal government’s allocation of the
funds provided under the CARES Act. See 42 U.S.C. § 801(c)(7). Despite having three separate
reliable sources to The Shawnee Tribes’ population data – one of which was data submitted
directly by The Shawnee Tribe’s government at the Treasury’s request – the Treasury issued
funds based upon the incomplete and unreliable IHBG Metric population data reporting zero
enrolled tribal members, which was arbitrary and capricious.
6. Defendants, the United States Department of the Interior (the “Interior”) and David
Bernhardt (“Secretary Bernhardt”), who has been sued in his official capacity as the Secretary of
the Interior, was tasked under the CARES Act to consult with Tribal governments to determine
each Tribal government’s allocation of the funds provided under the CARES Act and,
accordingly, they had an obligation to ensure the most accurate enrollment numbers were used in
calculating the allocation, which it failed to do. See 42 U.S.C. § 801(c)(7).
2
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RELEVANT BACKGROUND
A. Tribal Funding Under the CARES Act
7. The CARES Act, Pub. L. 116-136, 134 Stat. 281 (2020), was signed into law on
March 27, 2020, to provide economic relief for, among many other individuals, Tribal, state, and
local governments impacted by the COVID-19 pandemic.
8. Pursuant to Title V of the CARES Act, which amends the Social Security Act
(42 U.S.C. 301 et seq.), Congress appropriated $8 billion in direct aid to “Tribal governments”
specifically (“Title V Funds”). 42 U.S.C. § 801(a)(2)(B).
9. Title V defines “Tribal governments” as “the recognized governing body of an
Indian tribe.” Id. § 801(g)(5).
10. The Shawnee Tribe is a federally recognized Tribal government as defined by the
CARES Act, and entitled to receive Title V Funds proportionate to a rational and reasonable tally
of its total population.
B. After Perfunctory Consultation Treasury Solicits Information and Adopts a
Population Based Allocation that is Arbitrary and Unreasonable
11. Congress specifically directed that:
From the amount set aside under subsection (a)(2)(B) for fiscal year
2020, the amount paid under this section for fiscal year 2020 to a Tribal
government shall be the amount the Secretary shall determine, in
consultation with the Secretary of the Interior and Indian Tribes, that is
based on increased expenditures of each such Tribal government …
relative to aggregate expenditures in fiscal year 2019 by the Tribal
government … and determined in such manner as the Secretary
determines appropriate to ensure that all amounts available under
subsection (a)(2)(B) for fiscal year 2020 are distributed to Tribal
governments.
Id. § 801(c)(7) (emphasis added). In short, the Treasury, in consultation with Interior and Indian
Tribes, was given authority to determine the amounts Tribal governments should receive, based
3
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on their "increased expenditures" relative to fiscal year 2019 aggregate expenditures. The
CARES Act did not explicitly authorize the Secretary to adopt a population based formula to
determine the amount of funding Tribal governments were to receive under Title V.1
12. On April 2, 2020 and April 9, 2020, Treasury and the Interior held telephonic
consultation sessions where federal officials heard from representatives of Tribal governments
from across the United States. Treasury also solicited written comments from Tribal governments
regarding their views on potential methodologies for the allocation of Title V Funds.
13. On April 8, 2020, the superintendent for the Department of the Interior Bureau of
Indian Affairs (BIA) Miami agency office contacted the Tribe and specifically requested the
Tribe's certified tribal member enrollment population. The Tribe provided the BIA with an
enrollment population of 3,021 tribal citizens.
14. Following the conclusion of the consultation period, on April 13, 2020, Treasury
published a form entitled “Certification for Requested Tribal Data” on its website. The
“Certification for Requested Tribal Data” sought individualized enrollment data from all 574
federally recognized Tribal governments.
15. The Shawnee Tribe provided the requested data to Treasury prior to Treasury’s
April 17, 2020, deadline. The Shawnee Tribe timely certified Plaintiff’s Actual Tribal Enrollment
Metric of 3,021. See Exhibit A.
16. On May 5, 2020, Secretary Mnuchin and Secretary Bernhardt issued a joint press
1
Compare with 42 U.S.C. 801(c)(8). Although Congress mandated that Treasury use United States Census Bureau
population data for determining the distribution of Title V Funds to States and units of local government (42 U.S.C.
§ 801(c)(8)), no such requirement exists for the distribution of funds to Tribal governments. Instead, Tribal
governments are treated as a distinct category from state and local governments in Title V. See, e.g., id. at § 801(a)(1)
(referencing payments to “States, Tribal governments, and units of local government”).
4
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release announcing the agreed upon plan for allocating the Title V Funds.2
17. According to the jointly agreed upon plan, Treasury decided to split the Title V
funds into two allocations. The first allocation to Indian Tribes would be from sixty percent of the
Title V Funds, or $4.8 billion, “based on tribal population” (“Population Award”) because “Tribal
population [was] expected to correlate reasonably well with the amount of increased expenditures
of Tribal governments related directly to the public health emergency, such as increased costs to
address medical and public health needs.”3
18. For tribes with a population of less than 37 members, a minimum payment of
$100,000 would be awarded.4
C. Without consultation with the Tribes, Treasury uses IHBG’s Race-Based Data
containing inaccurate population data.
19. Despite The Shawnee Tribe providing enrollment data of over 3,000 members
only weeks earlier, the Treasury elected to allocate the Population Award based “on population
data used in the distribution of the Indian Housing Block Grant,” (“IHBG”), under the Department
of Housing and Urban Development (“HUD”).5
20. According to Treasury, it adopted the IHBG data because it was purportedly a
“reliable and consistently-prepared” metric.
2
U.S. Dept. of the Treasury, Joint Statement by Treasury Secretary Steven T. Mnuchin and
Secretary of the Interior David L. Bernhardt on Distribution of Coronavirus Relief Fund Dollars
to Native American Tribes (May 5, 2020), https://home.treasury.gov/news/press-releases/sm998
(last visited June 16, 2020)
3
U.S Dept. of the Treasury, Coronavirus Relief Fund Allocations to Tribal Governments,
https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Tribal-Allocation-
Methodology.pdf, (last visited June 16, 2020), p. 2.
4
Id., p. 3.
5
U.S. Dept. of the Treasury, Joint Statement by Treasury Secretary Steven T. Mnuchin and
Secretary of the Interior David L. Bernhardt on Distribution of Coronavirus Relief Fund Dollars
to Native American Tribes, https://home.treasury.gov/news/press-releases/sm998, (last visited
Jun. 16, 2020).
5
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21. Under the IHBG race-based data, twenty-five Tribal governments, including The
Shawnee Tribe, are listed as having a population of zero, a practical impossibility (“IHBG Race-
Based Data”).6
22. Within the same IHBG data, HUD reports that The Shawnee Tribe has 2113
enrolled members (“IHBG Enrollment Data”). See Exhibit B.
23. Although HUD maintains enrollment population data for tribes, it is for the sole
purpose of calculation and distributing HUD funds, which The Shawnee Tribe does not receive
and is, thus, erroneously undercounted.
24. Treasury made the determination to use IHBG Race-Based Data even though the
BIA also maintains accurate enrollment numbers for tribes, and in fact sought to directly confirm
the correct enrollment number with the Shawnee Tribe.7
25. At no time prior to the Treasury’s May 5, 2020 announcement did it give The
Shawnee Tribe or any other tribal government notice that it might utilize the ill-fitting IHBG Race-
Based Data, rather than the accurate population data solicited directly from the tribes, or readily
available data through the IHBG Enrollment Data and the BIA.
D. Due to the Obvious Error in Population, the Shawnee Tribe Receives the Minimum
Funding and Seeks to Correct the Error.
26. The same day that Treasury released its allocation plan, on May 5, 2020, it
announced the first round of funding consisting of $4.8 billion. Based on the Treasury’s
Population Award calculations, The Shawnee Tribe received only $100,000, which was the
minimum allocation based on the IHBG Race-Based Data showing it had zero population.7
6
U.S Dept. of the Treasury, Coronavirus Relief Fund Allocations to Tribal Governments,
https://home.treasury.gov/system/files/136/Coronavirus-Relief-Fund-Tribal-Allocation-
Methodology.pdf, p. 2 (last visited June 16, 2020).
7
Id., p. 3.
6
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27. Even though The Shawnee Tribe has an official enrollment of 3,021 tribal
members, and even though HUD has an enrollment number of 2,113 for the Shawnee Tribe, the
IHBG "formula" has a population of zero for the Shawnee Tribe. Because of this obviously
erroneous population amount, the Shawnee Tribe only received $100,000 for its "Population
Award."
28. The Shawnee Tribe immediately sought to determine why Treasury used the
obviously incorrect population number.
29. On May 13, 2020, on a conference call with Tribal leaders and Dan Kowalski,
Senior Counselor to Secretary Mnuchin, Chief Ben Barnes raised a question about how it was
possible for a tribe to be listed as having zero citizens. Chief Barnes further asked if there was a
challenge process to correct what was clearly a clerical or accounting error. Mr. Kowalski's
response was that he understood the issue but that there was no recourse for the Tribe.
30. The Shawnee Tribe began pursuing other potential administrative recourse,
including outreach communications to Mr. Kowalski, White House staff, and Interior staff.
31. Upon information and belief, the various staff members conveyed to the Tribe and
its representatives that Treasury realized its error and was working on a potential solution.
32. The Shawnee Tribe also enlisted the support of congressional representative. On
May 28, 2020, several members of Congress sent a letter to the Secretary seeking a resolution to
this clear error. See Exhibit C.
33. Upon information and belief, Representative Mark Wayne Mullin and his staff
spoke to Mr. Kowalski or his staff on multiple occasions. On or about June 8, 2020, Rep. Mullin
offered a potential solution for the Tribe. Mr. Kowalski advised Rep. Mullin that he would take
the solution to Secretary Mnuchin.
34. Upon information and belief, Treasury responded to Rep. Mullin on June 10, 2020
7
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that they acknowledged some tribe’s populations were zeroed out and other’s populations were
drastically reduced. Nonetheless, Treasury decided they would not distribute any additional
money to the negatively impacted tribes. Instead, Treasury advised Rep. Mullin that if a tribe has
an issue with their amount (or lack thereof), they should file a lawsuit.
35. On June 12, 2020 Treasury announced the methodology for the second allocation
of funds.8 Because of several pending lawsuits against Treasury, Treasury decided to withhold
approximately $679 million of the Title V funds in reserve, as a policy matter, “‘to resolve any
potentially adverse decision in litigation’ over Defendant’s methodology for calculating
disbursements from CARES Act appropriation for Tribal governments.”9
36. However, on June 15, the District Court for the District of Columbia ordered the
Secretary to disburse these reserved funds no later than June 17, 2020. See Exhibit D, Order in
Agua Caliente Band of Cahuilla Indians et al. v. Mnuchin, 20-cv-01136 (APM), pp. 2-3.10
37. On information and belief, Treasury is in the process of disbursing the remaining
$679 million of Title V Funds, as it has been ordered to do so and it is expected to do so
imminently.
E. Treasury's Clear Error and Unwillingness to Correct Its Error Prevents the Tribe
From Receiving its Fair Share of the Title V Fund and Hinders the Tribe's Ability
to Respond to the COVID-19 Pandemic
38. Treasury clearly erroneous and thus unreasonable reliance on the IHGB Race-
8
U.S Dept. of the Treasury, Tribal Allocation Methodology for Second Distribution,
https://home.treasury.gov/system/files/136/Tribal-Allocation-Methodology-for-Second-
Distribution.pdf (last visited June 16, 2020).
9
Id, pg. 2
10
Though the court in Prairie Band Potawatomi Nation v. Mnuchin has ordered distribution of the
remaining $679 million, it has done so because “[a]t present, there is no court order that prevents
the Secretary from releasing the remaining $679 million in Title V funds to Tribal governments.
That amount is being withheld of the Secretary’s own accord.” Exhibit D, pp. 2-3.
8
Case 4:20-cv-00290-JED-FHM Document 2 Filed in USDC ND/OK on 06/18/20 Page 9 of 15
Based Data showing The Shawnee Tribe had a zero population11 and awarded it $100,000 instead
of the approximately $6 million or more12 it would have been entitled to had the enrollment data
readily available from The Shawnee Tribe itself, the BIA or available within the same HUD
document Treasury relied upon been used.
39. Treasury’s data set grossly undercounted The Shawnee Tribe’s total enrolled
population by nearly 3,000 members, or approximately 98 percent, assuming the best case
scenario that it accounted for at least 37 members.
40. The Shawnee Tribe has incurred significant medical and public health expenses
in responding to the devastation resulting from the COVID-19 pandemic, and it continues to
provide essential services to its citizens residing on-reservation and off-reservation.
41. As such, Treasury’s allocation formula which grossly understates The Shawnee
Tribe’s population – despite readily available and reliable data showing otherwise – is arbitrary
and capricious, and has caused injury to The Shawnee Tribe by reducing the Tribe’s proportionate
share of the Population Award.
COUNT I
(Declaratory Relief,
5 U.S.C. § 706, and 28 U.S.C. §§ 2201-2202)
42. The Shawnee Tribe restates and realleges the preceding paragraphs as if fully
stated herein.
43. The Administrative Procedures Act (“APA”) authorizes judicial review of agency
actions. 5 U.S.C. § 702.
11
If Treasury did, in fact, award Title V funds to The Shawnee Tribe based on 37 members or any
other number, it would be unsupported by any data whatsoever.
12
Because the Treasury’s remaining formula is based on a pro rata share of money received by all
tribes, and the calculations and population figures for other tribes are currently unknown, The
Shawnee cannot determine the exact amount it would be entitled to Title V funds had the correct
enrollment numbers been used.
9
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44. The APA allows a Court to set aside agency actions, findings, and conclusions
found to be arbitrary, capricious, an abuse of discretion, or otherwise contrary to law. 5 U.S.C.
§ 706(2)(A).
45. Treasury’s and Interior's joint decision to adopt the IHBG Race-Based Data for
the basis of calculating the Population Award was arbitrary and capricious under the APA.
46. Treasury’s and Interior's rationale for adopting the IHBG Race-Based Data was
based on inaccurate inferences, including: (i) that the IHBG is “reliable and consistently-
prepared”; (ii) that IHBG captures Tribal population; (iii) that Tribal governments are familiar
with and scrutinize the IHBG; and (iv) that the IHBG data’s reliance on Census Bureau data is a
benefit for the purposes of disbursement of Title V Funds.
47. The IHBG data is facially flawed, as it contains population values for The
Shawnee Tribe which are objectively erroneous; relies upon race-based population that is not an
accurate measurement of essential services the Shawnee tribal government provides to its
citizens; it fails to account for the Tribe's citizens who reside outside of the geographic area used
by HUD to determine Tribal housing needs; and it fails to account for the Tribe’s lack of
participation in the HUD program or the census gathering.
48. Even if Treasury’s reliance on and use of the IHBG formula for calculating the
Population Award was not arbitrary and capricious, in light of the plainly wrong population
number of zero for Shawnee Treasury's failure to use readily available and accurate data
documenting The Shawnee Tribe’s actual population was clearly erroneous and unreasonable.
49. Treasury had access to The Shawnee Tribe’s population data from three sources:
(1) the Bureau of Indian Affairs, with which it consulted; (2) The Shawnee Tribe itself, at
Treasury’s request; and (3) the IHBG data showing that The Shawnee Tribe’s population was at
10
Case 4:20-cv-00290-JED-FHM Document 2 Filed in USDC ND/OK on 06/18/20 Page 11 of 15
least 2113.
50. Treasury had this data, yet it ignored it and relied upon the IHBG Race-Based
Data showing The Shawnee Tribe had zero members.
51. Aside from being patently false and a practical impossibility, the IHBG Race-
Based Data showing The Shawnee Tribe has zero members was contradicted by data within the
same document, which Defendants ignored.
52. Despite its knowledge and admission of such clear error, Treasury also arbitrarily
and capriciously ignored the Shawnee Tribe's and Rep. Mullin's efforts over 30 days to correct
the clear error, and advising the Tribe to sue instead.
53. The APA also directs a Court to set aside agency actions that fail to observe
procedure required by law. 5 U.S.C. § 706(2)(A)
54. Title V of the CARES Act granted Treasury the discretion to determine an
appropriate method of allocating Title V funds to Tribal governments only after consulting with
tribal governments and the Interior. 42 U.S.C. § 801(7).
55. Treasury never consulted with tribal governments to use IHBG Race-Based Data
as a basis for awarding funds, particularly where Tribal governments had just submitted their
enrollment data to Treasury, per its request. Tribal governments were, therefore, deprived of a
reasonable opportunity to consult on the weaknesses of the IHBG Race-Based Data.
56. Pursuant to the CARES Act, the Interior was required to consult with Treasury to
determine the appropriate allocation formula.
57. The Interior also had reasonable notice that the IHBG Race-Based Data was an
improper source of population data, upon which Treasury could base its Population Award; thus,
11
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it had a duty under its general trust obligations and the CARES Act to investigate and ensure the
use of the proper population data.
58. Secretary Bernhardt and the Interior failed to do so.
59. For all the above reasons, Defendants actions and inactions are arbitrary,
capricious, an abuse of discretion or otherwise contrary to law and should be set aside.
COUNT II
(Injunctive Relief
Against Secretary Mnuchin and Treasury)
60. The Shawnee Tribe restates and realleges the preceding paragraphs as if fully
stated herein.
61. Pursuant to the CARES Act, The Shawnee Tribe is entitled to a proportionate
share of the Title V Funds.
62. The Shawnee Tribe has incurred significant medical and public health expenses
in responding to the devastation resulting from the COVID-19 pandemic and the Tribe continues
to provide essential services to its citizens residing on-reservation and off-reservation.
63. The Shawnee Tribe is likely to prevail under APA because Treasury’s selection
of the allocation formula was arbitrary and capricious, as alleged above.
64. Even if it were not, Defendants ignored readily available data in calculating the
Population Award, which grossly understated The Shawnee Tribe’s population by nearly 3,000
members or approximately 98 percent.
65. This gross understatement has resulted in injury to The Shawnee Tribe by reducing
the Tribe’s proportionate share of the Population Award.
66. Further, Treasury refused to correct its known and admitted clear error without the
filing of this law suit.
12
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67. Treasury’s pending disbursement of the remainder of the Title V Funds, which
was ordered to occur by June 17, threatens The Shawnee Tribe with imminent, irreparable, injury
as it will exhaust the Title V Funds and leave the Tribe without an adequate remedy.
68. Consequently, The Shawnee Tribe is entitled to a temporary restraining order
pending a hearing for preliminary injunction enjoining Secretary Mnuchin and Treasury from
distributing any further portion of the reserved $679 million intended to resolve the amount of
funds for Oklahoma tribes, any further portion of any remaining Title V funds, or at least $12
million, until such time as Secretary Mnuchin and Treasury can determine the appropriate amount
of funding based on The Shawnee Tribe's accurate tribal member population.
PRAYER FOR RELIEF
Wherefore, The Shawnee Tribe respectfully requests the Court:
1. Enter judgment pursuant to 28 U.S.C. § 2201 and 5 U.S.C. § 706 declaring that
Treasury’s and Interior's use of the IHBG data to distribute Title V funds was arbitrary,
capricious, an abuse of discretion, and otherwise not in accordance with law and procedural
requirements;
2. Enter judgment pursuant to 28 U.S.C. § 2201 and 5 U.S.C. § 706 declaring that
Treasury's failure to correct the obvious population data error for the Shawnee Tribe in the IHBG
formula before the funds were distributed under the Population Award, and Treasury's ongoing
refusal to correct the known and obvious population data error was arbitrary, capricious, an abuse
of discretion, and otherwise not in accordance with the CARES Act;
3. Enjoin Treasury and Secretary Mnuchin from distributing, disbursing, or
otherwise depleting any further that portion of the reserved $679 million intended to resolve the
amount of funds for Oklahoma tribes, any further portion of any remaining Title V funds, or that
13
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amount that would be reasonably available to Oklahoma tribes but no less than $12 million, until
such time as The Shawnee Tribe's accurate population data is used and funds are distributed to
The Shawnee Tribe consistent with the purpose of the CARES Act; and
4. Award The Shawnee Tribe its reasonable attorney fees, costs, and such other and
further relief as the Court deems just and proper.
Dated this 18th day of June, 2020.
/s/ Gregory Bigler
Gregory Bigler (OK Bar No. 11759)
BIGLER LAW
P. O. Box 1927
Sapulpa, Oklahoma 74067
Pilar M. Thomas (pro hac vice pending)
QUARLES & BRADY LLP
One South Church Avenue, Suite 1800
Tucson, Arizona 85746
Nicole L. Simmons (pro hac vice pending)
QUARLES & BRADY LLP
One Renaissance Square
Two North Central Avenue
Phoenix, Arizona 85004-2391
Attorneys for Plaintiff
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