Borden: "States around the country are targeting foreign-owned shares for extra revenue"
The Wall Street Journal recently highlighted a major unclaimed property case with implications around the nation. The article addresses pending litigation regarding Delaware’s sale of stocks owned by two foreign investors. Delaware escheated the stock and liquidated it without notifying its owners, Dr. Gilles Gosselin and Dr. Jean Louis Imbach.
Both doctors alleged that the state wrongfully seized their shares in Idenix Pharmaceuticals Inc. and sold the stock for $1.7 million to pad the state budget in 2009. The stock is worth more than $13 million.
“Delaware isn’t alone. States around the country are targeting foreign-owned shares for extra revenue,” said Jennifer Borden. “Illinois, South Dakota and Tennessee have made it easier this year for officials to seize and sell securities they deem abandoned. That’s putting an undue burden on foreign shareholders to protect their investments.”
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