WASHINGTON (AP) — Kansas and Nebraska are among 21 states suing the State of Delaware to give back more than $150 million in uncashed money orders.
Texas Attorney General Ken Paxton said Thursday the states are suing Delaware over an escalating dispute involving uncashed money orders from Dallas-based MoneyGram.
MoneyGram has been submitting unclaimed money to Delaware, where the company is incorporated. The other states argue that the money should go back to the state where purchased.
Abandoned property is the third-largest source of general fund revenue for Delaware and is expected to total more than half a billion dollars in the current fiscal year. The huge amount stems from Delaware’s status as the legal home to more than 1 million businesses.
An audit shows that if other states join the lawsuit, the lawsuit could threaten an even larger portion of Delaware’s budget. $400 million could be slashed out of Delaware’s budget if the remaining states were to join the lawsuit and win. That amount would be equal to one-tenth of Delaware’s $4 billion budget.
Of the 21 states listed as plaintiffs, Texas would receive $10 million. Other states in the lawsuit are Alabama, Arizona, Arkansas, Colorado, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina, Utah and West Virginia.