Delaware has reached a settlement in a legal dispute, agreeing to return $102 million in unclaimed MoneyGram funds to 30 states. Furthermore, they will also be sharing an additional $89 million that is being held in escrow. This resolution aims to ensure that the rightful owners of these funds are able to reclaim them, benefiting multiple states in the process.
Delaware Settles Long-Running Legal Battle Over Unclaimed MoneyGram Funds, Returns $102 Million to 30 States
Delaware has reached a settlement in a protracted legal battle concerning unclaimed MoneyGram funds, agreeing to disburse $102 million to a consortium of 30 states. This resolution stems from a U.S. Supreme Court ruling that determined unclaimed MoneyGram checks should be allocated to the states in which they were initially issued, rather than to Delaware, where MoneyGram is headquartered. The protracted dispute, which originated in 2015, serves as a vivid illustration of the intricacies of unclaimed property laws and the significance of these funds to Delaware’s budget.
Delaware’s handling of unclaimed property, a significant source of revenue for the state, came under scrutiny in a recent case. With nearly 2 million companies calling Delaware home, unclaimed property contributes substantially to the state’s income, accounting for approximately 6% of its total revenue in fiscal year 2023. However, the Supreme Court’s ruling mandates that unclaimed MoneyGram funds from 2011 to 2017 be returned to the states where the checks were issued, rather than being retained by Delaware.
Delaware Settles Unclaimed Property Lawsuit, Potentially Impacting Future Revenue Distribution
According to a report by Delaware Online, the states involved in the court case will share the settlement amount, which also includes an additional $89 million held in escrow. While Delaware officials believe that the immediate financial impact won’t be significant, there are concerns that this case might encourage other states to challenge Delaware’s ownership of unclaimed property. Such challenges could potentially alter the future distribution of these funds.
The recent settlement signifies a growing focus on the management of unclaimed property by states, as Delaware relinquishes $102 million in unclaimed MoneyGram funds and an additional $89 million held in escrow. While Delaware insists that the financial impact will be manageable, this case may prompt other states to scrutinize Delaware’s assertions regarding unclaimed funds. Consequently, we may observe modifications in the utilization of unclaimed property laws and the distribution of revenue derived from these assets among states.
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