Supreme Court Denies Borders Gift Card Holders

On Monday, the U.S. Supreme Court opened the October 2015 term with a long list of denials, including denying the petition for a writ of certiorari in Eric Beeman v. BGI Creditors' Liquidating Trust. In Beeman, the Petitioners asked the Court to permit their claims against the Borders bookstore bankruptcy estate to proceed. The petitioners, consumers with unredeemed gift cards, wanted the Bankruptcy Court to permit their claims despite the claims being filed after the deadline for filing claims and after the confirmation of the company's liquidation plan. The Bankruptcy Court denied the claims as untimely filed. On appeal to the U.S. District Court for the Southern District of New York, the Court dismissed the claims as equitably moot. The Second Circuit Court of Appeals affirmed.

According to the petitioners, at the time of the Borders bankruptcy in February 2011, approximately 22 million cards were unredeemed with a value of more than $275 million.

See Also:
What Happens to Gift Cards When Companies Go Bankrupt?
Abercrombie Winning Class Action Battle Over Promotional Cards
Prepaid Card Planning Goes Beyond Legal Analysis