Settlement Reached Over Unclaimed MoneyGram Funds

By Nate Raymond

(Reuters) – Thirty states are set to receive more than $102 million from Delaware following a unanimous U.S. Supreme Court ruling last year. The ruling stated that Delaware had no right to retain hundreds of millions of dollars from uncashed MoneyGram checks.

The settlement, announced on Thursday, resolves outstanding damages after the Supreme Court sided with the states in a yearslong dispute regarding the rightful ownership of unclaimed funds. The court determined in February 2023 that these funds generally belong to the states where the MoneyGram financial products were purchased, rather than to Delaware, the incorporation state of the world’s second-largest money transfer company.

Delaware has been home to many major U.S. corporations, and unclaimed property is a significant revenue source for the state, contributing hundreds of millions of dollars annually to its funding.

Notably, this Supreme Court ruling was also the first penned by Justice Ketanji Brown Jackson since her confirmation in 2022.

According to the settlement, Delaware will transfer over $102 million of the unclaimed MoneyGram funds, which it had collected from 2011 to 2017, to the involved states. Moreover, $89 million, originally deposited by MoneyGram into an escrow during litigation from 2018 to 2022, will be allocated among all 50 U.S. states, with the 30 suing states receiving $55 million plus interest.

Brenda Mayrack, Delaware’s State Escheator who oversees its unclaimed property office, stated that the state is pleased to conclude this matter through the signing of a 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 remarked.