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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)
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