[co-author: Stephanie Kozol]*
In a significant development for state unclaimed property programs, Wisconsin has joined a bipartisan coalition of 30 states in reaching a settlement with Delaware, effectively concluding a long-standing dispute over unclaimed official checks issued by MoneyGram Payment Systems, Inc. (MoneyGram). This settlement follows a unanimous 2023 U.S. Supreme Court decision that ruled these checks are governed by the Federal Disposition Act.
The agreement resolves the damages phase of the consolidated actions of State of Delaware v. Commonwealth of Pennsylvania et al. and State of Arkansas, et al. v. State of Delaware.
The settlement outlines a comprehensive plan for the distribution of unclaimed funds. Delaware has agreed to transfer over $102 million to the coalition states for unclaimed property reported by MoneyGram from 2011 to 2017, with the allocation based on each monetary instrument’s place of purchase. Additionally, approximately $89 million plus interest, which has been held in a litigation escrow account from 2018 to 2022, will be distributed among all 50 states.
As part of this agreement, Wisconsin stands to benefit significantly, receiving more than $9 million from Delaware and more than $1.6 million plus interest from the escrow account. Following the distribution, states will assume custody of the property and take on the responsibility for returning it to its rightful owners. This approach ensures that each state can manage the unclaimed funds according to their own procedures and regulations, potentially increasing the likelihood of successful reunification with property owners.
Wisconsin Attorney General Josh Kaul commented on the settlement, emphasizing its positive impact on Wisconsin consumers and the state’s finances. David Casey, secretary of the Wisconsin Department of Revenue, highlighted the importance of reuniting unclaimed property with its rightful owners, noting that future claims related to this settlement can be made through the Department’s Unclaimed Property portal.
This resolution marks the end of a complex legal battle involving multiple states and significant unclaimed funds. It underscores the importance of proper allocation and management of unclaimed property across state lines.
Why It Matters
This settlement not only brings millions of dollars back to Wisconsin but also sets a precedent for how interstate unclaimed property disputes are resolved. It reinforces the role of state governments in safeguarding and returning unclaimed funds to their rightful owners, potentially impacting how similar cases are handled in the future.
*Senior Government Relations Manager
