On June 11, 2019, the California Attorney General filed a Complaint in the Superior Court of California, County of San Francisco (CGC-19-576620), alleging that ClubCorp violated California’s False Claims Act (CFCA) and the California Unclaimed Property and Unfair Competition laws when it knowingly omitted in its unclaimed property reports approximately $10 million in unclaimed initiation […]
Litigation (5 articles)
NY Supreme Court Win for Life Insurers in $14 Billion Whistleblower Case On April 3, 2019, in Total Asset Recovery Services, LLC vs. Met Life Inc., No. 115336/2010 (NY Sup. Oct. 3, 2019), the Supreme Court of the State of New York, County of New York, granted a motion to dismiss in favor of defendant […]
Univar alleges that the unclaimed property audit spearheaded by Kelmar violates a number of its constitutional rights, including substantive and procedural due process rights, the right to equal protection and the right to be free from unreasonable searches and seizures, and that it constitutes a taking of private property without just compensation.
The verdict against Overstock likely means that Delaware will further scrutinize companies utilizing similar giftco structures and could possibly subject them to litigation or audit, even forcing some to re-domesticate outside of Delaware to avoid such scrutiny. Gift card holders should be overly cautious and be prepared to defend their organizational structures to the state.
The issues center on which state has jurisdiction over $150 million in uncashed official checks. Both Delaware and a group of 21 other states have laid claim to all or a portion of the $150 million sum citing federal common law and the federal Disposition of Abandoned Money Orders and Traveler’s Checks Act, respectively.