By Nate Raymond
(Reuters) – Thirty states are set to receive more than $102 million from Delaware after the U.S. Supreme Court last year unanimously ruled that it had no right to keep hundreds of millions of dollars in uncashed MoneyGram checks for itself.
The settlement announced on Thursday resolves the issue of damages that remained outstanding after the Supreme Court sided with the 30 states in a yearslong dispute over who was entitled to the unclaimed funds.
The court held in February 2023 that the unclaimed funds generally belonged to the states where the MoneyGram financial products were purchased and not to Delaware, the state where the world’s second-largest money transfer company is incorporated.
Many of the largest U.S. companies are incorporated in Delaware, and unclaimed property has become a big money maker for the state, bringing in hundreds of millions of dollars annually to help fund its government.
The Supreme Court’s ruling was of additional note because it was the first to be written by Justice Ketanji Brown Jackson for the court following her 2022 confirmation.
Under the settlement, Delaware will transfer more than $102 million of the unclaimed MoneyGram funds it took possession of from 2011 to 2017 to the 30 states.
Another $89 million that MoneyGram had deposited into an escrow account during the litigation from 2018 to 2022 will be divided among all 50 U.S. states. The 30 states that sued Delaware will receive $55 million of that money, plus interest.
Delaware State Escheator Brenda Mayrack, who oversees the state’s unclaimed property office, in a statement said Delaware was “pleased to bring this matter to a close with the signing of this historic interstate settlement agreement.”
“Going forward, we look forward to working cooperatively and constructively with our sister states to focus on reuniting owners with their property and improving holder compliance with state unclaimed property laws,” she said.
(Reporting by Nate Raymond in Boston; editing by Jonathan Oatis)
