Justices Skeptical of Delaware’s Claim to MoneyGram Millions (1)

Several US Supreme Court justices appeared skeptical of Delaware’s argument that it—and not other states—is the rightful recipient of hundreds of millions in unclaimed funds from Delaware-based MoneyGram, the second-largest money transfer company in the world.

Justice Clarence Thomas opened questioning at argument Monday, asking Delaware attorney Neal Katyal of Hogan Lovells US LLP whether the state’s reading of a 1974 federal statute is too narrow. What MoneyGram calls “official checks” are bank drafts just like the money orders and similar written instruments named in the statute, he said.

Katyal warned that broadening the definition ...