Delaware has agreed to settle a legal dispute by returning $102 million in unclaimed MoneyGram funds to 30 states and sharing an additional $89 million held in escrow.
Delaware Settles Long-Running Legal Battle Over Unclaimed MoneyGram Funds, Returns $102 Million to 30 States
Delaware has agreed to settle a long legal fight over unclaimed MoneyGram funds by sending $102 million to a group of 30 states. This agreement follows a U.S. Supreme Court ruling that said unclaimed MoneyGram checks should go to the states where they were originally issued, not to Delaware, where MoneyGram is based. The dispute, which started in 2015 showed how complicated unclaimed property laws can be and how important these funds are to Delaware’s budget.
The case was about how Delaware handles unclaimed property which makes up a big part of the state’s revenue. Delaware, home to nearly 2 million companies, relies heavily on unclaimed property for its income, which was about 6% of its total revenue in fiscal year 2023. However, the Supreme Court’s decision means that unclaimed MoneyGram funds from 2011 to 2017 must be returned to the states where the checks were issued, not kept by Delaware.
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(photo: WDSU)
Delaware Settles Unclaimed Property Lawsuit, Potentially Impacting Future Revenue Distribution
According to the report of Delaware Online, the settlement also includes an extra $89 million that was held in escrow during the court case. This money will also be shared among the states. Delaware officials say the financial impact won’t be huge right away, but there are worries that this case might lead other states to challenge Delaware’s claims over unclaimed property which could change how these funds are shared in the future.
The settlement which involves Delaware giving up $102 million in unclaimed MoneyGram funds and an extra $89 million held in escrow shows that there is more attention on how states manage unclaimed property. Although Delaware says the financial hit will be manageable this case could lead to more states questioning Delaware’s claims on unclaimed funds. This might lead to changes in how unclaimed property laws are used and how revenue from these properties is distributed among states.
