Attorney General Laxalt Joins 20 State Coalition Challenging the State of Delaware’s Treatment of Unclaimed Money

June 9, 2016

Carson City, NV Today,Nevada Attorney General Adam Paul Laxalt joined 20 other states in filing a complaint in the United States Supreme Court against the State of Delaware for alleged violations of the Disposition of Abandoned Money Orders and Traveler’s Checks Act. The complaint seeks the return of an estimated $200 million from the State of Delaware to the 21 affected states, including Nevada.

The complaint alleges that Delaware violated the law by keeping all unpresented and uncashed MoneyGram Payment Systems, Inc. checks instead of transferring them to the states where the checks were purchased. The complaint asks the Supreme Court to hear the dispute between Delaware and the other states and to declare the states’ legal obligations under the Act.

“The State of Delaware has disregarded the law and misappropriated unclaimed MoneyGram checks for financial gain,” said Laxalt. “My Office remains committed to returning these funds back to their respective states, and claiming what rightfully belongs to the State of Nevada.”

In February 2015, an independent auditor determined that MoneyGram routinely tendered the funds of unclaimed checks to the State of Delaware. The amounts were subsequently transferred to that state. As a result, the audit further concluded that Delaware owes nearly $200 million to affected states.

In addition to Nevada, other states who joined this filing include: Alabama, Arkansas, Arizona, Colorado, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Montana, Nebraska, North Dakota, Ohio, Oklahoma, South Carolina, Texas, Utah and West Virginia.

To view the filed complaint, click here.