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


Connecticut Case Alleges Wrongful Escheatment

Photo by smokedsalmon on FreeDigitalPhotos.netThis month, a Federal District Court denied Computershare and Hanesbrands' motion to dismiss a case brought against them for wrongful escheatment of share of Hanesbrands stock.

Delaware Releases Proposed Audit Regulations

BindersAs part of the series of unclaimed property reforms over the past several years, Delaware Department of Finance was required to issue an audit manual by December 31, 2015.

Florida Bill Would Permit Estimation In Audits When Records Unavailable

A bill pending in the Florida House of Representatives would permit estimation when a holder does not have or refuses to provide records during the course of an examination, even when the holder is not incorporated in the state.

SoulCycle Gift Card Lawsuit Moves Forward

In August 2015, a SoulCycle customer filed a lawsuit against the spin class provider alleging that its Series Certificate contained an impermissible expiration date under various state and federal gift card laws. This week, a federal court judge denied most of SoulCycle's motion to dismiss, permitting the case to move forward. In an interesting twist, the Court also applied a choice of law notwithstanding purported contractual terms of a different state.

Recent Litigation Spotlights Due Diligence Efforts (or Lack Thereof)

Due diligence is the process in which an owner is notified that property will be reported as unclaimed property. Most states have requirements that holders perform this activity prior to reporting. Recent litigation is asking "what are the requirements to notify owners prior to the state taking custody of property?" These cases may lead to additional due diligence requirements or reporting obligations for the unclaimed property holder.


Delaware Sues Blackhawk/Parago Over Rebate Audit

Photo by smokedsalmon on FreeDigitalPhotos.netLast month, Delaware filed a lawsuit against Blackhawk Engagement Solutions (DE), Inc., the successor to Parago, Inc. The November lawsuit alleges that the rebate fulfillment processor for a number of large consumer corporations has not cooperated with state authorities and has failed to turn over requested information relating to rebates.

Manitoba Nixes Gift Card Inactivity Fees

Store Gift Card DisplayNew rules go into effect today in Manitoba, Canada, which prohibit inactivity fees on most gift cards. Exceptions apply to cards for specific goods or services or those that are given away for free. Fees are permitted to replace lost or stolen cards and to customize the face of the card.

Oklahoma Ponzi Lawsuit Appealed to State Supreme Court

Photo by smokedsalmon on FreeDigitalPhotos.netLast summer, noted Oklahoma activist attorney Jerry Fent filed lawsuit against the state for improperly using the unclaimed property fund. Fent alleged that the fund had become a Ponzi scheme as the state routinely used the money to fund government operations.

Barganier Scholarships for Georgia State Students

The Barganier team is made up of accountants, lawyers, IT professionals, and other professionals. We believe in education, by serving on volunteer boards supporting our favorite educational institutions and supporting our alma matters. Both founding member Patricia Barganier Thorn and general counsel Kimberly DeCarrera graduated from Georgia State University with Masters in Taxation. We continue to support the GSU Tax program with the Barganier and Associates scholarships. These scholarships are merit based for students in the M.Tax program.

Supreme Court Denies Borders Gift Card Holders

On Monday, the U.S. Supreme Court opened the October 2015 term with a long list of denials, including denying the petition for a writ of certiorari in Eric Beeman v. BGI Creditors' Liquidating Trust. In Beeman, the Petitioners asked the Court to permit their claims against the Borders bookstore bankruptcy estate to proceed.