RadioShack targeted in Texas suit tied to $43 million in gift cards

By Caroline Salls

Pittsburgh, June 19 – RadioShack Corp. and RadioShack Customer Service LLC were named as defendants in a lawsuit filed by the Texas Attorney General’s office in connection with claims for $43 million in unredeemed gift cards, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the attorney general’s office is seeking a declaration that proofs of claim for the balance of unredeemed gift cards are entitled to priority status, a declaration that Texas has standing to file a proof of claim for the balance of unredeemed gift cards on behalf of consumers residing in the state and a declaration that funds should be turned over to the appropriate state for unclaimed property.

According to the complaint, RadioShack claimed that its gift cards do not expire.

“Now that the gift cards have expired, the only recourse for consumers is to file a proof of claim in this bankruptcy case,” the attorney general’s office said. “However, the defendants have not made any efforts to provide those consumers with notice of the filing or any other deadlines.”

The office said consumer funds should not be distributed to other creditors, and claims for unredeemed gift card funds are entitled to priority status.

RadioShack is a Fort Worth-based technology retailer that filed for bankruptcy on Feb. 5. Its Chapter 11 case number is 15-10197.

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