In a settlement hailed as a victory for the consortium of states involved, Attorney General Ken Paxton announced that Texas and 29 other states have resolved an unclaimed property dispute with a substantial payout. This settlement effectively concludes a lengthy legal tussle over MoneyGram Payment Systems, Inc.'s unclaimed official checks, previously held by Delaware, with the states now poised to take custody of more than $190 million in unclaimed assets.
The dispute's resolution comes on the heels of a unanimous ruling by the U.S. Supreme Court in 2023, favoring Texas and its fellow coalition states. When it sided with Texas, the Court dictated that MoneyGram's unclaimed checks are subject to the Federal Disposition Act. According to a release from the Texas Attorney General's Office, Delaware will relent more than $102 million from reports spanning 2011-2017, based on the original state of purchase for each monetary instrument.
Moreover, the settlement encompasses approximately $89 million, alongside accrued interest, residing in a litigation escrow account which MoneyGram contributed to from 2018 to 2022. This amount is scheduled for distribution amongst all 50 states, again in accordance with the place of purchase. The entire coalition states are expected to benefit from nearly $55 million of this pot, plus the interest earned, as they take up the task of reuniting owners with their respective properties.
Ending the longstanding litigation, this agreement requires the states to ensure unclaimed property is properly returned to its rightful owners. Attorney General Ken Paxton commented, "I am pleased that we have been able to reach an agreement with Delaware to release money wrongfully withheld from Texas in violation of federal law." His statement, from the AG's office, praised the collaborative efforts of Arkansas, Texas, and coalition partners that led to the recovery of these assets.
Originating with Delaware as the defendant, there was an additional lineup of states that launched the original action, which included Arkansas, Pennsylvania, California, Wisconsin, and twenty-five other states ranging broadly across the nation from Alabama to Wyoming. This settlement marks the cessation of their collective legal pursuit as states gear up to manage the newly acquired funds and seek reparation for their residents.
