A Sacramento federal judge on Wednesday threw out an 11-year-old lawsuit that challenged how the state controller runs the unclaimed property program.
U.S. District Judge John A. Mendez ruled that Controller John Chiang is in compliance with the law governing the program and, he said, that law was found to be constitutional on its face by a federal appeals court.
Attorneys representing people who have had property taken by the controller said they will appeal Mendez's dismissal of the suit to the 9th U.S. Circuit Court of Appeals, which has already issued three published opinions in the case.