The suit was filed in U.S. District Court for Delaware.
According to a release, Office Depot issued its own gift certificates and gift cards. In its unclaimed property reports due March 1, 2001 and March 1, 2002, Office Depot reported and remitted property to Delaware, including unredeemed gift certificates issued by Office Depot where addresses of purchasers and recipients were not obtained.
In 2001, Office Depot and Delaware entered into a voluntary disclosure agreement (VDA) whereby Delaware released Office Depot from any unclaimed property claims for property for report years due before March 1, 2000. NACCS was formed on May 10, 2002, and it issues gift cards, gift certificates, and merchandise credits.
NACCS acquired the assets and assumed the liabilities of Office Depot’s gift card and gift certificate business per agreement dated December 30, 2002.
The companies allege that Delaware, through its contract auditor Kelmar Associates LLC commenced an audit of Office Depot’s compliance with the Delaware Escheats Law (“DUPL”) in February 2013.
The companies objected to the request and filed suit, citing the volume of records sought in determining whether unclaimed property revenue should go to Delaware.
Companies have been objecting to practices used in collecting unclaimed property revenue under the Delaware law and a recent ruling went against the state.
Unclaimed property is a major source of revenue for the state.