Delaware has decided to end a legal dispute by giving back $102 million in unclaimed MoneyGram funds to 30 states and splitting the other $89 million that was held in escrow.
Delaware Settles Long-Running Legal Battle Over Unclaimed MoneyGram Funds, Returns $102 Million to 30 States
After a long legal battle over unclaimed MoneyGram funds, Delaware has decided to send $102 million to 30 states to end the case. The U.S. Supreme Court said that MoneyGram checks that haven’t been claimed should go to the states where they were sent, not to Delaware, where MoneyGram is based. This deal follows that decision. The fight that began in 2015 showed how hard it can be to follow rules about unclaimed property and how important these funds are to Delaware’s budget.
The case was about how Delaware deals with lost property, which brings in a lot of money for the state. Delaware is home to almost 2 million businesses, and a big part of its income comes from lost property. In fiscal year 2023, it made up about 6% of all its income. But because of the Supreme Court’s ruling, MoneyGram funds that were sent but not claimed from 2011 to 2017 must be sent back to the states where the checks were written instead of being kept by Delaware.
Delaware Settles Unclaimed Property Lawsuit, Potentially Impacting Future Revenue Distribution
Delaware Online says that the deal includes an extra $89 million that was held in trust while the case was going on. The states will also get some of this money. Officials in Delaware say that the case won’t have a big effect on the state’s finances right away. However, some people are worried that other states may question Delaware’s claims over unclaimed property, which could change how these funds are shared in the future.
Delaware will give up $102 million in unclaimed MoneyGram funds as part of the deal. An additional $89 million will be held in escrow. This shows that more people are paying attention to how states handle unclaimed property. Delaware says the financial hit will be doable, but this case could make other states doubt Delaware’s claims on unclaimed funds. There could be changes to how rules about unclaimed property are used and how money from these properties is shared between states.