David Yates Jul. 14, 2015, 4:21pm


Attorney General Ken Paxton, who sued RadioShack over $43 million in unused gift cards, says buyers of those cards need a voice in the bankruptcy proceedings, according to a July 14 press release.

In response to RadioShack’s motion to dismiss, Paxton said, “customers have the right to be provided notice of the bankruptcy case and should be given instructions to file a claim for their unredeemed gift cards.”

“We have asked the bankruptcy judge to determine that these consumers are entitled to have their claims for unredeemed gift cards treated as priority claims, and the state of Texas – along with the other states – should have the right to act on their behalf,” said Paxton.

“Texas will continue to lead the fight to ensure the interests of consumers are protected throughout this case.”

RadioShack has yet to give any notice of the claims process or notice of the filing of bankruptcy to holders or purchasers of unredeemed gift cards, according to the press release.

The state of Texas filed the lawsuit on behalf of consumers on June 18 in the U.S. Bankruptcy Court for the District of Delaware.

A month earlier, in May, a Texas-led collation reached an agreement with RadioShack in consumer privacy case brought because the company sought to sell its customers’ personally identifiable information in connection with the sale of RadioShack’s trademark and intellectual property.

Under the terms of the settlement agreement reached after mediation, the overwhelming bulk of RadioShack’s consumer data will be destroyed, and no credit or debit card account numbers, social security numbers, dates of birth or even phone numbers will be transferred.

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