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September 2021 Lawsuit

District 204’s Withdrawal from the TTO

As a result of the ruling, District 204 was allowed by state law to withdraw from the TTO, which it did effective July 1, 2021. State law required the TTO to transfer all of District 204’s funds in assets to the District, but the TTO did not fully comply. Initially, the TTO withheld $6 million of funds in District 204’s account from the transfer, refused to meet to discuss the financial matters with District 204 and declined our requests for financial information and documentation.

In September 2021, the TTO stated that it intended to take nearly $1.3 million in funds from District 204's account for what it claimed were over-allocations of investment earnings dating back to 1995, despite the fact that the Judge rejected this same claim in the now-resolved lawsuit.

LT Attempt to Collect All Funds From TTO

In September 2021, District 204 filed a lawsuit to prevent the TTO from taking money from LT’s account and to require the TTO to transfer all assets due to District 204. In addition to funds that the TTO took from District 204’s account, District 204 was entitled to receive its share of investment earnings that the TTO never distributed to its member districts, as well as District 204’s share of funds that the TTO borrowed from the districts to finance the TTO’s operations and cover its past fraudulent activities.

At District 204’s request, the Judge in the new lawsuit entered an order of injunction requiring the TTO to hold the funds it took from District 204’s account in a separate, frozen account pending further order of court. District 204 was successful in forcing the TTO to transfer some of the frozen funds, about $4 million, to District 204. Throughout the last two years, LT has continued to pursue its right to receive the remaining funds that the TTO held in the separate, frozen account.