RadioShack has reached a tentative settlement in a dispute over the treatment of gift card holders in the electronics retailer's bankruptcy case.
Under a settlement outlined Wednesday, holders of roughly a third of the $46 million in outstanding gift cards would receive priority status and be paid in full.
In a statement provided to NBC News, Texas Attorney General Ken Paxton called the agreement "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.”
The statement said attorneys for RadioShack are expected to file a motion on Friday asking the bankruptcy court in Delaware to accept the deal.
If the court accepts the deal, consumers will have 12 months after RadioShack's plan of liquidation goes into effect to file an online proof of claim form or by mail, the statement said.
It said the tentative settlement does not cover “merchandise returns and certain promotional gift cards given away without consideration.” Holders of those cards would be lumped in with general unsecured creditors, meaning they likely would receive pennies on the dollar, if anything.
The agreement stems from a complaint filed by the Texas attorney general's office, which is working with attorneys general in several states on behalf of RadioShack gift card holders.
Attorneys for some gift card holders say they may still try to press their claims.