Up-to-date News Regarding Unclaimed Property and Corporate Compliance


21 States Sue Delaware Over Unclaimed Property

Twenty-one states, led by Texas and Arkansas, have filed a lawsuit against Delaware at the U.S. Supreme Court, invoking original jurisdiction for disputes between the states. The States are seeking more than $150 million in "official checks" from Delaware, part of the ongoing dispute over the MoneyGram checks.

Delaware Asks Supreme Court to Take MoneyGram Case

US Supreme CourtDelaware followed up its filings in the Federal District Court case with a Motion for Leave to File a Bill of Complaint with the U.S. Supreme Court in the case concerning official checks issued by MoneyGram.

Connecticut Bill to Require Cash Back on Small Balance Gift Cards

Connecticut is on the verge of joining a growing number of states that require gift card issuers to issue cash back on small balances remaining on gift cards, as HB 5664 awaits the governor's signature. Connecticut Governor Dan Malloy is expected to sign the legislation that would require retailers in the state to issue cash back on balances under $3 after a purchase has been made. The $3 limit is a compromise from an original $10 cash back. Once signed, the law becomes effective October 1, 2016.

Delaware and MoneyGram Say Case Belongs in U.S. Supreme Court

Pennsylvania sued Delaware and MoneyGram in U.S. District Court for the Middle District of Pennsylvania in February 2016. Both Delaware and MoneyGram have filed Motions to Dismiss the case, saying that the U.S. Supreme Court has original and exclusive jurisdiction over the controversy.

Bell Wins Canada Class Action Lawsuit Over Prepaid Cells

cellphoneThis week, Ontario's top court gave Bell Mobility, who manages prepaid cellular accounts for Virgin Mobile Canada and Solo Mobile, a win in a certified class action lawsuit brought by consumers who said that the company had improperly applied expiration dates to their accounts.

Oklahoma Supreme Court: Unclaimed Property Not a Ponzi Scheme

Court Order
In June 2015, Jerry Fent, a local activist attorney, filed a lawsuit against the State of Oklahoma, saying that the unclaimed property program was a Ponzi scheme since the state regularly used the unclaimed money to fund other portions of the state's budget.

Delaware Pushes Audit Revenue to Next Year

DEFAC, the Delaware Economic and Financial Advisory Council, released its latest forecast and pushed approximately $40 million of abandoned property to next fiscal year. Finance Secretary Tom Cook said that the $40 million move is due to audits that they no longer expect to close before June 30, 2016, the end of the fiscal year. Unclaimed property remains the third largest source of "revenue" for the state, behind only personal income taxes and business franchise taxes.

Supreme Court Denies Petition in Taylor Case

Court OrderToday, the United States Supreme Court denied the petition for writ of certiorari in Taylor v. Yee. Taylor is the long running California case which temporarily shut down the California system and resulted in the two-report process.

Battle Royale: Pennsylvania v. Delaware

Can you follow the bouncing money?In this corner, we have Delaware who has possession and custody of certain uncashed checks. In the other corner, we have Pennsylvania which is attempting to collect the money that it says was owed to it in the first place. In the middle, MoneyGram International is caught between the two warring states as they fight it out to decide which state gets the cash.

Nine Year Unclaimed Property Audit Leads to Federal Lawsuit

Photo by smokedsalmon on FreeDigitalPhotos.netLast week, Marathon Petroleum and Speedway filed a lawsuit against the State of Delaware seeking to stop the State’s attempts to collect unclaimed property which it lacks standing and is preempted by federal law.