Defendants File Motion to Dismiss Delaware Unclaimed Property Qui Tam Suit


Diann Smith said “there are a lot of things … that the court will have to take very seriously” in briefs filed by defendants in a motion to dismiss a Delaware qui tam case alleging improper schemes to avoid taxes on unclaimed gift card liabilities. The defendants’ methods “were not a secret,” Ms. Smith noted. “Delaware knew about them; they were talked about at conferences and were promoted in marketing materials.” If the case is not dismissed on this ground, she added, it could create more lawsuits in which private plaintiffs usurp state audit and policy functions.