MoneyGram Unclaimed Property Settlements Total $191 Million

MoneyGram Unclaimed Property Settlements Total $191 Million, and that's a significant amount of money that could be yours if you're a claimant. The total settlement amount is staggering.

The settlement was a result of a class action lawsuit filed against MoneyGram, and it's a win for those who were affected by the company's unclaimed property policies.

MoneyGram has been working to reunite claimants with their rightful funds, and it's a step in the right direction towards transparency and accountability.

Delaware and 30 other states have reached a settlement resolving yearslong litigation over unclaimed checks issued by MoneyGram. The settlement follows last year's Supreme Court decision in Delaware v. Pennsylvania et al.

The settlement ends the damages phase of the litigation, with Delaware transferring over $102 million of property reported by MoneyGram from 2011 to 2017 to the 30 states, based on where each monetary instrument was purchased. An additional $89 million deposited by MoneyGram in a litigation escrow account from 2018 to 2022 will be distributed among all 50 states based on each instrument's place of purchase.

The 30 states involved in the litigation expect to receive nearly $55 million, plus interest, from the escrow account. This settlement does not impact the Supreme Court's 2023 decision on applying the FDA to the MoneyGram checks at issue.

Under the terms of the settlement, Delaware will transfer more than $102 million of property reported by MoneyGram to the 30 states, based on each monetary instrument's place of purchase. An additional $89 million deposited by MoneyGram in a litigation escrow account will be distributed among all 50 states based on each instrument's place of purchase.

The settlement agreement ends the outstanding parts of the ongoing litigation before the U.S. Supreme Court. Texas and the other states will take possession of more than $190 million in unclaimed property.

The coalition states will receive nearly $55 million, plus earned interest, from the escrow account. States will assume custody and responsibility to return any property received under the terms of the settlement or from the escrow account to owners, including paying any claims for the property.

A multistate audit of MoneyGram revealed that the company had been incorrectly reporting and remitting the value of unclaimed checks to the State of Delaware from 2011 to 2017. This practice violated federal law, which requires money orders and other similar written instruments to be escheated to the state in which they were purchased.

The U.S. Supreme Court ruled in favor of Michigan and the coalition of states in February 2023, affirming the plaintiff states' rights to unclaimed property belonging to their residents.

Delaware will transfer more than $102 million of property reported by MoneyGram from 2011 to 2017 to the 30 states, based on where each monetary instrument was purchased.

The 30 states involved in the litigation expect to receive nearly $55 million, plus interest, from the escrow account. An additional $89 million that had been placed in a litigation escrow account from 2018 to 2022 will be distributed among all 50 states based on each instrument's place of purchase.

Pennsylvania is entitled to more than $20 million in unclaimed property following the Delaware v. Pennsylvania et al case, with an additional $14 million covering back to 2011 approved in the settlement.

The $191 million settlement reached by Delaware and 30 other states in the MoneyGram unclaimed property litigation is a significant milestone in the case. This amount represents the total value of the settlement.

Delaware will transfer over $102 million of property reported by MoneyGram from 2011 to 2017 to the 30 states involved in the litigation. This amount is based on where each monetary instrument was purchased.

An additional $89 million will be distributed among all 50 states based on each instrument's place of purchase. This amount had been placed in a litigation escrow account from 2018 to 2022.

The 30 states involved in the litigation can expect to receive nearly $55 million, plus interest, from the escrow account.

The $9M settlement is a significant recovery for Michigan residents. This amount will be returned to residents who had unclaimed MoneyGram checks.

A multistate audit revealed that MoneyGram incorrectly reported and remitted the value of unclaimed checks to the State of Delaware from 2011 to 2017. This practice violated federal law.

The U.S. Supreme Court ruled in favor of Michigan and the coalition of states in February 2023, affirming their rights to unclaimed property belonging to their residents. This ruling was a major victory for Michigan residents.

The settlement will allow the State of Michigan to return millions of dollars to residents. Residents can check for any unclaimed property they may be eligible to claim on the Michigan Department of Treasury's website.

Pennsylvania is set to receive more than $20 million in unclaimed property as part of a recent settlement.

This amount includes approximately $14 million covering back to 2011 and $6,256,096 remitted to Treasury by MoneyGram in April for 2023 and 2024.

The settlement concludes nearly eight years of litigation and is a result of the Supreme Court ruling in favor of Pennsylvania in February 2023.

Treasurer Stacy Garrity praised the settlement, stating it's a huge win for Pennsylvania consumers and sets a right standard for the future of unclaimed property law.

Any Pennsylvanians who bought an uncashed MoneyGram check since January 1, 2011, can visit patreasury.gov/unclaimed-property to file a claim.

The MoneyGram settlement has left companies handling financial instruments in a bit of a pickle. They now need to decide whether their checks, like cashier's checks and certified checks, are similar enough to money orders to be considered under the Federal Disposition Act.

Companies like MoneyGram, which issues these types of checks, must consider their state of incorporation, such as Delaware, where MoneyGram is incorporated. This decision will determine where unclaimed property should be escheated.

The Supreme Court's ruling didn't provide clear guidance on this issue, leaving companies to make their own call. This means they'll have to weigh the similarities between their checks and money orders to make an informed decision.

The MoneyGram litigation settlement has significant implications for companies that handle financial instruments like checks. The Supreme Court's ruling left unclear whether these instruments are considered "money orders or other similar instruments" under the Federal Disposition Act.

Companies must now decide whether these instruments are sufficiently like money orders based on the MoneyGram ruling. This decision determines the fate of unclaimed property.

The type of instrument at issue includes cashier's checks, certified checks, and official checks, which consumers use to pay creditors. These instruments are commonly used for various financial transactions.

The decision on whether these instruments are like money orders will determine whether unclaimed property escheats to the state of incorporation or the state where the instrument was purchased. The state of incorporation in MoneyGram's case is Delaware.

Companies should be on high alert due to the ruling and anticipated actions of the states and third-party auditors. Tightening up your annual compliance and policies and procedures will go a long way in being prepared for any increase in enforcement by the states.

Reporting all name and address information and retaining that information for the record retention period can shield companies from potential disputes between the states. This precaution should go a long way in mitigating risks to companies.

Delaware will transfer more than $102 million of property reported by MoneyGram from 2011 to 2017 to 30 states, based on where each monetary instrument was purchased. This is a significant step in resolving the litigation.

Michigan residents will finally have a real opportunity to claim their uncashed MoneyGram checks, thanks to a $9 million settlement announced by Attorney General Dana Nessel. This settlement will allow the State of Michigan to return millions of dollars to residents.

Texas, along with a bipartisan coalition of 29 other states, has reached a settlement ending the outstanding damages phase of an unclaimed property dispute before the U.S. Supreme Court. The coalition states will receive nearly $55 million, plus earned interest, from a litigation escrow account.

A multistate audit of MoneyGram revealed that the company had been incorrectly reporting and remitting the value of unclaimed checks to the State of Delaware from 2011 to 2017, rather than to the states where the money order was purchased. This practice violated federal law.

Delaware will also transfer additional funds from a litigation escrow account, totaling approximately $89 million, to all 50 states based on each instrument's place of purchase.