In the final weeks of 2019, four large companies filed suit in federal district court challenging Delaware’s administration of its unclaimed property program. Each company submitted complaints alleging Delaware’s revised unclaimed property law violates both federal common law and the U.S. Constitution.
While there are slight variations in the facts of each complaint, the basic story is consistent:
- Each company was undergoing a Delaware unclaimed property audit conducted by a third-party audit firm.
- Each audit had lasted at least five years.
- Each company elected to enter into the expedited audit program, which was offered under Delaware’s revised unclaimed property statutes as a result of the Temple-Inland decision in 2016.1
- Delaware terminated participation in the expedited audit program upon expiration of the statutory two-year completion period.