HARRISBURG, PA — Pennsylvania is set to receive more than $20 million in unclaimed property following a pivotal settlement concluded after a landmark U.S. Supreme Court decision. This outcome stems from the Delaware v. Pennsylvania et al case, where the court ruled in favor of Pennsylvania, determining that Delaware improperly claimed uncashed “official checks” purchased in other states as unclaimed property.
Thursday’s unanimous Supreme Court decision marks a significant precedent in unclaimed property law. The ruling enforces that uncashed MoneyGram official checks should be returned to the states where they were originally purchased, aligning with the standards set by the Federal Disposition Act (FDA). This act dictates that unclaimed financial instruments should revert to the state of purchase rather than the state of corporate incorporation.
Pennsylvania State Treasurer Stacy Garrity expressed satisfaction with the resolution, stating, “This is a huge win for Pennsylvania consumers, and the right standard has been set for the future. The U.S. Supreme Court agreed with us that these checks should be returned to the states where they were purchased, and this settlement is the first step in getting that money back into the right hands. I’m proud of the legal team here at Treasury for leading the successful effort to establish this important precedent in national unclaimed property law.”
The $20 million sum encompasses $6,256,096 remitted by MoneyGram to the Pennsylvania Treasury in April 2024, covering the report years 2023 and 2024. Additionally, approximately $14 million was secured through the settlement, resolving disputes dating back to 2011.
The case was initiated by Pennsylvania in 2016 following Delaware’s refusal to resolve the issue amicably when it first arose in 2014. Pennsylvania filed the lawsuit in the U.S. District Court for the Middle District of Pennsylvania. The matter was escalated to the Supreme Court, which holds jurisdiction over interstate disputes. The Supreme Court ruling in February 2023 solidified Pennsylvania’s position, marking the first significant decision on unclaimed property law in nearly three decades.
“This settlement concludes nearly eight years of litigation – and it’s a lawsuit that Pennsylvania should never have been compelled to initiate. The good news is that Pennsylvanians who did business with MoneyGram will have a real chance to be reunited with their money – as will people in every state where MoneyGram sells its products. Delaware’s refusal to amicably resolve this dispute when it was first raised in 2014 will result in the payment of over $190 million to the litigant states,” said Treasurer Garrity.
Pennsylvania was represented in the case by Chief Counsel Christopher B. Craig and Joshua J. Voss of Kleinbard LLC. Treasurer Garrity was the only state unclaimed property administrator directly involved, with other states represented by their Attorney General Offices.
The settlement not only benefits Pennsylvania but also impacts numerous other states. It concludes a prolonged legal battle involving over $190 million, which will now be distributed among the states involved in the litigation. The states of Arkansas, California, Texas, and Wisconsin, among others, joined Pennsylvania against Delaware, each standing to reclaim funds for their residents.
“This settlement is an important step towards clarifying the proper disposition of abandoned official checks, which prior to today have improperly been delivered to Delaware,” stated California State Controller Malia Cohen.
Residents who purchased MoneyGram official checks in Pennsylvania since January 1, 2011, that remain uncashed, are encouraged to contact the Pennsylvania Treasury Department to file claims. Essential documentation includes receipts showing the purchase location, amount, and date, as MoneyGram’s records are limited.
The Treasury Department is working to ensure that rightful owners are reunited with their funds, marking a significant milestone in the state’s efforts to uphold consumer rights and financial integrity.
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