Ken Paxton: Settlement Reached with Former RadioShack
Texas Attorney General Ken Paxton today announced a settlement has been reached with the former RadioShack that will see the former retail electronics giant paying the entire value of their unredeemed gift cards purchased by consumers as a priority claim in the bankruptcy. The settlement, announced in U.S. Bankruptcy Court in Wilmington, DE, applies to consumers nationwide and does not impose a minimum dollar threshold. This settlement is supported by the Attorneys General of New York, Pennsylvania, Oregon, Tennessee, and New Hampshire.
“This is a victory for consumers in Texas and nationwide who spent their hard-earned dollars on these gift cards with full confidence that the company would honor them,” said Attorney General Paxton. “I’m pleased that their voices were heard, and that, if approved next month by the bankruptcy court, they’ll get their money back with a minimum of bureaucratic red tape.”
An independent professional claims agent company will be approved by the Bankruptcy Court to review and process the claims. Consumers will have 12 months after RadioShack’s plan of liquidation goes into effect to file a simplified Proof of Claim form that will be available online or they can file their claim by mail if they prefer. Merchandise Returns and certain promotional gift cards given away without consideration that do not qualify as “priority” claims under applicable bankruptcy law will be paid as general unsecured claims.
Former Radio Shack is expected to file the motion to approve the settlement Friday.