Supreme Court Ruling: Delaware to Return $102 Million in Unclaimed MoneyGram Checks to 30 States
By Nate Raymond
(Multibagger) - In a landmark decision, the U.S. Supreme Court has mandated that Delaware return over $102 million to 30 states after ruling that it had illegitimately retained uncashed MoneyGram checks. This ruling is a significant win for the states involved and sets a new precedent for the handling of unclaimed funds.
Key Takeaways:
- Supreme Court Verdict: In February 2023, the Supreme Court ruled unanimously that unclaimed MoneyGram funds should be returned to the states where the checks were originally purchased, rather than being kept by Delaware.
- Financial Implications: Delaware, which has historically benefited from unclaimed property revenues, will transfer $102 million in unclaimed checks from 2011 to 2017 to the 30 states that filed the lawsuit.
- Historic Judgement: This case is notable for being the first decision written by Justice Ketanji Brown Jackson following her 2022 confirmation to the Supreme Court.
- Escrow Funds Distribution: An additional $89 million, held in escrow by MoneyGram during litigation from 2018 to 2022, will be allocated among all 50 states. The 30 states involved in the lawsuit will receive $55 million plus interest from this escrow fund.
Delaware's Response:
Brenda Mayrack, Delaware State Escheator, expressed satisfaction with the resolution, emphasizing the state's commitment to collaborating with other states to ensure proper compliance with unclaimed property laws and reuniting owners with their assets.
Analysis for Investors and Public:
What does this mean for you? Simply put, the Supreme Court's ruling ensures that unclaimed financial assets are returned to their rightful owners or the states where they were purchased, rather than being held by the state of incorporation. This could mean that if you have any unclaimed MoneyGram checks, you might be able to reclaim your money through your state's unclaimed property office.
For investors, this ruling underscores the importance of understanding the implications of unclaimed property laws and how they can affect state revenues and, subsequently, state-funded programs. Delaware’s loss of this revenue stream might prompt changes in how it manages its finances, potentially impacting businesses incorporated there.
In summary, the Supreme Court's decision not only ensures a fair distribution of unclaimed funds but also promotes greater transparency and cooperation among states in managing unclaimed properties. This is a win for consumers and a significant precedent in the handling of unclaimed financial assets.