Kansas State Treasurer Steven Johnson said a bipartisan settlement of multistate litigation against Delaware regarding unclaimed property from a money-transfer company would result in $1.5 million being forwarded to Kansas for distribution to consumers.

The dispute had its roots in action by Delaware to distort federal law in a way that led Delaware-incorporated MoneyGram to forward uncashed checks solely to Delaware instead of back to states where those financial instruments were purchased. The U.S. Supreme Court unanimously rejected Delaware’s view last year and ordered MoneyGram and similar companies to be governed by the Federal Disposition Act.

The settlement announced last week required $102 million in unclaimed property MoneyGram reported to Delaware from 2011 to 2017 to be transferred to Kansas and other states in the litigation coalition. In addition, an estimated $89 million deposited by MoneyGram in an escrow account from 2018 to 2022 would be shared among all 50 states.

“This settlement will ease the ability for Kansans to locate over $1.5 million in missing MoneyGram funds improperly held by the state of Delaware,” said Steven Johnson, the Kansas state treasurer. “These funds will eventually be part of our statewide outreach efforts to reunite unclaimed property funds with the rightful owners.”

He said Kansas would assume responsibility for outreach necessary to return $1.55 million to those making a justified claim for the property. People can search under a name or business at www.treasurer.ks.gov.

“Delaware is pleased to bring this matter to a close with the signing of this historic interstate settlement agreement,” said Brenda Mayrack, Delaware’s director of unclaimed property.

For years, MoneyGram and Delaware viewed uncashed orders, cashier’s or traveler’s checks as unclaimed property that should be handled by Delaware.

Other states taking part in the settlement were Colorado, Nebraska, Oklahoma, Iowa and Arkansas.

Arkansas Attorney General Tim Griffin said the arrangement ended nearly eight years of litigation.

“I’m proud of our work on this important case, and I’m grateful to our coalition partners — particularly the attorneys general of California, Texas, and Wisconsin, and attorneys for Pennsylvania — for their hard work on this matter,” he said.

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Story via Kansas Reflector