Delaware Settles Controversial Unclaimed Property Case, Will Review Audit Practices

Overview


Diann Smith said settlement of a Delaware unclaimed property lawsuit leaves companies currently undergoing audit or participating in the state’s Voluntary Disclosure Agreement program in limbo, because “it seems pretty clear from the judge’s discussion that the use of property with addresses in other states to extrapolate property liability to Delaware was fundamentally flawed.” Ms. Smith urged the state to pause all audit and VDA activities until it revises its audit methods.