Delaware Illegally Bars Interest on Unclaimed Money, Suit Says

A Delaware law that prohibits the state from paying people for its use of unclaimed money is unconstitutional, a proposed class action said.

The law allows the state to take possession of and use the money—which usually comes from bank accounts, uncashed paychecks, uncashed stock dividend checks, and insurance payments, among other sources—until the rightful owner receives it. In the meantime, it’s put in the state’s general fund and invested, earning interest and other benefits, according to a lawsuit filed Thursday in US District Court for the District of Delaware.

And while the state and US constitutions bar the government ...