Background:
Elsie Flette, acting as litigation guardian for minor children E.F. and I.F., and Lee Malcolm-Baptiste, brought a class action against the Government of Manitoba. The case centered on Manitoba's policy from 2005 to 2019 requiring Child and Family Services (CFS) agencies to remit federal Children's Special Allowance (CSA) benefits, intended for children in care, to the province. This policy disproportionately affected Indigenous children.

Legal Issues:
The plaintiffs argued that the CSA policy violated Section 15(1) of the Canadian Charter of Rights and Freedoms by discriminating against Indigenous children on the basis of race and national or ethnic origin. The policy also contradicted the Children's Special Allowance Act and retroactive legislation in The Budget Implementation and Tax Statutes Amendment Act (BITSA) 2020, which sought to validate Manitoba's actions, was challenged and found unconstitutional.

Settlement and Awards:
A settlement agreement was reached, with a total award of $445.2 million. Of this, 69% was allocated to the Flette class action and 31% to the Lavallee class action, which involved non-Indigenous children. The settlement also included individual compensation amounts ranging from $150 to $86,000 for eligible claimants.

Outcome:
The court approved the settlement, deeming it fair, reasonable, and in the best interests of the class. Additionally, Manitoba agreed to issue a public apology to the class members, and no reversion of funds would occur if any amounts remained undistributed.