Overview
Stephen Kranz said that a Delaware qui tam lawsuit alleging improper corporate schemes to avoid being classified as holders of unclaimed gift card liabilities under the state unclaimed property laws “is going to have tremendous ramifications for the whole retail community, whether they are using a third-party gift card provider or have set up a gift card company as their own. The direction that it is headed is a very concerning one for the retail community at large and the gift card industry specifically.” He noted the qui tam suit could also expose companies to taxpayer and consumer privacy concerns.
