Unclaimed Property and Corporate Compliance News

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.

GSU Tax and Barganier Announce 2016 Scholarship Winners

Scholarship winners with Patricia Barganier ThornOn Wednesday, February 10, 2016, Barganier and Associates founder Patricia Barganier Thorn presented the 2016 Barganier Scholarship to two deserving students of the Georgia State University Masters of Taxation program. Cindy Jordan and Ji Yi received the merit based scholarships to assist them in completing their education at Georgia State.

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.

California

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.

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