What Made News?
A group of merchants and restaurants, including Netflix Inc., California Pizza Kitchen Inc., and Ralph Lauren Corp., are fighting back in federal court against a Delaware lawsuit alleging that they have been withholding unclaimed gift card balances that are due to the state.
Background on the Case
Delaware law expressly includes gift cards in its abandoned property law. Under Delaware law, if a gift card has been abandoned or unclaimed for a period of five years, then the remaining balance must be turned over to the state if certain criteria are met. The unclaimed property must be turned over to Delaware if the unclaimed property is located in the state, if the owner who abandoned the property has a last known address in Delaware, or if the owner’s identity and last known address are unknown but the property is held by a business incorporated in Delaware.