Daily News Egypt

Delaware to be sued by 21 other US states - Daily News Egypt

Advertising Area

Advertising Area

Delaware to be sued by 21 other US states

Delaware's reputation as a corporate haven has landed it in hot water with other parts of the US. Texas has said the tiny state must pay back what has taken on abandoned money orders.

Delaware’s reputation as a corporate haven has landed it in hot water with other parts of the US. Texas has said the tiny state must pay back what has taken on abandoned money orders.
Texas led the charge on Thursday as it and 20 other US states declared they were suing Delaware as a disagreement over uncashed money orders reached a fever pitch. Delaware is known for its lax regulations on incorporating companies, and benefits handsomely from abandoned financial property.

Ken Paxton, the attorney general of Texas, said the 21 states involved in the suit were filing a complaint before the US Supreme Court during an official announcement in Washington.

Delaware’s many corporate-friendly statues have encouraged numerous successful companies to incorporate in the state, even if they are headquartered and run from elsewhere. About half of all publicly traded US companies are incorporated in the state, as well as some 60 percent of the Fortune 500 list.

Laws that stipulate unclaimed property must be routed through the state of incorporation if the owner’s address is incomplete have netted Delaware huge profits. About one-third of the state’s income is generated this way, and in this fiscal year alone it is expected to make nearly half a billion dollars (441 million euros) off the system.

Texas: Delaware owes other states $150 million

At the center of the current dispute is the Dallas-based money order firm MoneyGram, which has been funneling unclaimed funds to Delaware. According to Paxton, Delaware owes some $150 million to Texas and the other states in the suit.

“We are committed to get this money for unclaimed MoneyGram checks reverted to the states, claiming what rightfully belongs to our taxpayers,” Paxton said.

This is not the first time Delaware has felt the heat from other parts of the US. In February, neighboring Pennsylvania sued the state for holding onto $10 million in money orders that were initially purchased in Pennsylvania.

The other states joining Texas in the current suit are Arkansas, Alabama, Arizona, Colorado, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Michigan, Montana, Nebraska, Nevada, North Dakota, Ohio, Oklahoma, South Carolina, Utah and West Virginia.

es/kms (AP, Reuters)

Advertising Area

Advertising Area

  • Mary Andrew

    Just when I felt like giving up totally, Dr. Kazzam stepped in and reminded me that nothing is too hard for Him! I have been standing for many, many years and didn’t know that I was on the verge of accepting to divorce my husband, when I found Dr. Kazzams contact online. It took me getting to a place of being absolutely broken for me to see that I needed to tell him what i had been facing in my marriage with my husband.I made a War Room in my bedroom closet and went straight to the Source! It did get hard many times; my husband was still at home and not being supportive and still wanted a divorce, but I knew the little i had would sustain me and my daughter. My suddenly came this past Saturday. Dr. Kazzam’s spell put him in a place to decide whether he would abandon us or work on our marriage. Only by the powers of Dr. Kazzam’s spell did he actually say that he still wanted to be married and canceled the contract on a home he was about to buy in Hemet California! Indeed, nothing is impossible with Dr. Kazzam’s spell, and I know that I am about to receive double for my husband shame, because Dr. Kazzam can make all things new! Standers, NEVER give up!” I am Mary andrew from Georgia. contact Dr. Kazzam if you are having problems in your marriage on drkazzamspell@gmail.com. he is the best spell caster.

Breaking News

No current breaking news

Daily News Egypt Android App Available for free download on Google play
Daily News Egypt Ios App Available for free download on APP Store