Delaware to Pay $190 Million in MoneyGram Funds to Other States

Delaware will distribute more than $190 million in unclaimed MoneyGram funds to other states, under the terms of a deal announced Thursday to settle a case over what happens to financial transfers that don’t go through.

The settlement comes a year and a half after the US Supreme Court ruled that the “official checks” at issue in the case are similar enough to money orders to fall under the 1974 Disposition of Abandoned Money Orders and Traveler’s Checks Act.

That reading means any unclaimed funds go to the state where the checks were purchased, rather than to Delaware, where MoneyGram—the ...