https://www.newsmax.com/newsfr...dkt_nbr=0105028ucr1w

The nation's largest shopping mall owner said it's leaving Delaware as its state of incorporation, citing concerns of increasingly woke behavior by courts.

Simon Property Group, an S&P 500 company valued at $60 billion, last week said it could no longer rely on Delaware courts, which now allow for "meritless litigation" and "judicial interpretation without a clear statutory bias," Law.com reported.

The move mirrors Elon Musk's decision last year to move multiple companies, including Tesla and SpaceX, out of Delaware.

Delaware was once the gold standard for its corporate legal system.

But major corporations have joined Musk in his warnings that the blue state is simply too woke for any company to domicile there.

Recent press reports indicate corporate giants like Meta, parent of Facebook, and Walmart are preparing to move their domicile from Delaware.

Online player Dropbox quit Delaware recently and Coinbase chief legal officer Paul Grewal warned on X that "Delaware is at serious risk of losing its standing as the leading state of incorporation for American companies."

Billionaire Bill Ackman, CEO of Pershing Square Capital Management, said in an X post in early February that he planned to move his management company out of Delaware to reincorporate in Nevada or Texas.

Several recent rulings have ignited concern about the courts.

Delaware Chancellor Judge Kathaleen McCormick in December ruled that Musk was not eligible for a 2018 compensation package then valued at $56 billion, a package that would be worth over $100 billion in value today.

Musk was not happy with McCormick's ruling and took to X, writing, "Shareholders should control company votes, not judges." The billionaire has urged other companies to leave Delaware for other states.

Some critics said Judge McCormick, a Democrat, was acting to confiscate Musk's legitimate compensation, approved by Tesla shareholders twice, for becoming a critic of the Biden administration and opening X to conservatives.

McCormick suggested Musk's package was too large, but then awarded the law firm which sued over the deal some $345 million for their legal filings. The law firm itself never suffered any damage as a result of Musk's compensation award.

Similarly, in 2023 Fox News settled a libel suit brought by Dominion Voting Systems for an unprecedented $787 million, the largest amount ever known for a defamation case.

Soon after the settlement, Fox News' then legal chief Viet Dinh, slammed the Delaware courts saying the judge in the case had failed to allow the network to offer a standard libel defense, including showing their balanced coverage of the 2020 election to a potential jury.

Delaware Gov. Matt Meyer told Business Insider the state faces a credibility problem but said he would try to lure back companies that leave.

"Any company thinking about leaving, we're actively reaching out, we're talking to them, we're understanding what the issues are and understanding what ways we can do better," Meyer told the outlet. "And for those entities that have already made the decision to leave, we're going to continue to work hard to earn their trust and hopefully to have them come back."

I read recently that 40% of the state’s budget is/was funded by the fees levied on these corporations …..

Will have a severe impact on the state’s economy.

quote:

"Any company thinking about leaving, we're actively reaching out, we're talking to them, we're understanding what the issues are and understanding what ways we can do better," Meyer told the outlet. "And for those entities that have already made the decision to leave, we're going to continue to work hard to earn their trust and hopefully to have them come back."

Well, governor, tell us exactly how you intend to fix these woke judges?

Thanks for that post 6guns. It’s heartening to know that corporations are responding appropriately to these blue judge rulings.

Good for businesses to vote with their feet and abandon woke states like Delaware and others for business friendly states. What business is it of the courts how much money Elon Musk earns so long as he earned it legally. If the governor wants to save his state he needs to find a way to get rid of woke judges who abuse their position for personal/political gain and replace them with judges who will stay in their lane and abide by the law they've sworn to uphold.

quote:

Delaware Chancellor Judge Kathaleen...McCormick suggested Musk's package was too large

First time I've heard that one!

https://www.newsmax.com/newsfr...dkt_nbr=010104qmo2g3

AMC Moving from Delaware as Corporations Exit

AMC Networks Inc., owner of the popular cable AMC Channel, is planning to move its corporate domicile from Delaware and reincorporate in Nevada, joining a growing list of companies abandoning the state.

The AMC news hit just days after Madison Square Garden Entertainment announced it was planning to leave Delaware, a move made by at least 20 major companies in the past year, according to Robert Anderson, a professor of law at the University of Arkansas.

In a recent shareholder notice, AMC Networks Inc. said it sought approval of plans to 'redomesticate' from Delaware to Nevada, marking the latest high-profile exit from a state under fire for its left-leaning judicial system.

cont...

It sound be great to see Delaware bankrupted and the blame rests squarely on the governor, his legislature and his judges.

Can’t blame anyone else

Good! Any state that allows a certain judicial system to do what they want just because, should lose more until they change the problem. If they can't straighten it out, too bad. There are plenty of states that will welcome them and do it for less.

https://www.newsmax.com/financ...dkt_nbr=010102apwf01

Dillard's Moving From Delaware to Texas, Citing Legal Concerns

Dillard's Inc., one of the largest department store chains in the United States, has filed documents with the Securities and Exchange Commission (SEC) seeking shareholder approval to relocate its corporate domicile from Delaware to Texas.

The board's decision, disclosed in a recent regulatory filing, marks a significant step in a growing trend of companies abandoning Delaware as their state of incorporation due to increasing concerns over shareholder litigation and court rulings unfavorable to corporate leadership.

Dillard's, which operates about 270 stores in 30 states, employs around 40,000 workers and generates over $7 billion in annual revenue. The company has long been a staple in American retail, offering fashion apparel, cosmetics, and home furnishings.

According to the SEC filing, the company cited "certain high-profile litigation outcomes in Delaware that involved companies with controlling stockholders" as a primary reason for the proposed move.

Among those cases was the widely publicized lawsuit involving Elon Musk's Tesla compensation package, which was voided earlier this year by Delaware Chancellor Kathaleen McCormick despite it being approved twice by Tesla shareholders.

At the same time, the court also awarded $345 million in legal fees to the plaintiff's attorneys, sparking an outcry from corporate leaders and governance experts.

Dillard's stated that concerns raised by shareholders and management prompted its board to form a special committee to evaluate the company's corporate domicile.

The committee, working with prominent law firm Vinson & Elkins, reviewed the legal environments of Delaware, Texas, and Nevada before ultimately recommending a move to Texas.

The committee concluded that relocating to Texas could "reduce the potential for opportunistic and frivolous litigation against the Company and its directors and officers," and may help Dillard's "attract and retain qualified management and directors by reducing the risk of litigation."

It further stated that "Texas is more protective than Delaware" against such litigation.

The move, if approved by shareholders in an upcoming proxy vote, would place Dillard's among a growing number of high-profile companies exiting Delaware — often referred to as the "Dexit" movement.

In recent years, several major firms have opted to reincorporate in more management-friendly states such as Texas, Nevada, Indiana, and Florida. The list includes:

Tesla and SpaceX, both of which reincorporated in Texas in 2024 following the Musk compensation ruling.
Dropbox, which moved to Nevada in early 2025.
Roblox, which followed suit with a Nevada relocation in May 2025.
Trump Media & Technology Group, Pershing Square Capital Management, The Trade Desk, and TripAdvisor — all of which have exited Delaware since 2024.
Simon Property Group, the nation's largest mall owner with over $60 billion in market capitalization, completed its move from Delaware earlier this year.
Madison Square Garden Entertainment and AMC Networks also announced plans to leave Delaware this year.
Earlier this month Andreessen Horowitz, the prominent venture capital firm, announced that it had moved to Nevada. In a public statement, the firm criticized Delaware's legal system for "subjectivity" and encouraged startups and portfolio companies to consider alternatives.

Another frequently cited case contributing to Delaware's decline as a corporate center is the $787 million defamation settlement between Dominion Voting Systems and Fox News. Settled in 2023, the Delaware case set a new record in defamation cases.

Fox's then top legal officer, Viet Dihn, sharply criticized the Delaware Superior Court Judge, Eric Davis, for not applying standard defamation law in the case or allowing Fox to engage in appropriate libel defenses.

In a speech to Harvard Law School, Dihn called the court's rullings "illogical" that questioned thet "fairness and integrity" of the Delaware courts.

Dihn said, "As the judge compounded error upon error, we would get more and more confident in our ultimate chances of prevailing on appeal — because at some point, it became not just a matter of reversible error, it called into the fundamental fairness and integrity of the Delaware civil justice system."

Although Delaware lawmakers have introduced legislation in recent years aimed at curbing excessive litigation and reforming the state's corporate laws, critics claim the efforts will prove ineffective.

Former Harvard Law Professor Alan Dershowitz has urged corporations leave Delaware as their domicile, saying that an entrenched and "cozy" relationship between powerful plaintiff law firms and activist judges in the state have put defendants at a significant disadavantage in any litigation.

If faith is lost in the integrity of the judicial system, what is the long term recourse? Seems like any system is now corruptible.

Will AI based on very large LLM be the answer? Can a judicial AI system be incorruptible?

quote:

Originally posted by konata88:
If faith is lost in the integrity of the judicial system, what is the long term recourse? Seems like any system is now corruptible.

Will AI based on very large LLM be the answer? Can a judicial AI system be incorruptible?

Depends of who is programming the AI “judges” I suppose.

quote:

Originally posted by architect:

quote:

Delaware Chancellor Judge Kathaleen...McCormick suggested Musk's package was too large

First time I've heard that one!

I guess the upside is that he can say something like: "by legal declaration my package is too large"

I grew up in Delaware (but left the state early on). The leftward drift started in the late 60s to early 1970s. Prior to then, the state was solidly Republican. The northern part of the state, New Castle County, had the population to swing elections, so once Dems started winning the Governorship, US Senate seats, the sole US House seat, it was only a matter of time before the Dems took over the judiciary.

quote:

Originally posted by smlsig:
I read recently that 40% of the state’s budget is/was funded by the fees levied on these corporations …..

Will have a severe impact on the state’s economy.

It may be higher than that. They have always been a place that attracted business due to low taxes and the friendly courts but now they are busy committing suicide like California chasing their bread & butter right out of the state.

The sheer stupidity is breathtaking.

https://www.fidelity.com/news/...ED_KBN3MI1JW-OUSBS_1

Crypto exchange Coinbase to reincorporate in Texas, exit Delaware

(Reuters) -Cryptocurrency exchange Coinbase is departing Delaware and reincorporating itself in Texas, the company said in a regulatory filing on Wednesday, citing the new business hub's growing attractiveness for innovative companies.
Texas is establishing itself as the new darling of Corporate America by drawing companies with its favorable business environment, friendlier tax rules, lighter regulatory requirements, and new legislation aimed at establishing specialized business courts.
Several companies with a valuation of over $1 billion have moved their legal home out of Delaware since last year, in what some have nicknamed "Dexit."
Tesla shifted its headquarters to Texas last year in a high-profile relocation, while Trump Media & Technology, the owner of Truth Social, moved its base to Florida in April.
Coinbase, with a market capitalization of nearly $82 billion, according to LSEG, will be one of the largest companies to move base.
"For decades, Delaware was known for predictable court outcomes, respect for the judgment of corporate boards and speedy resolutions," Coinbase Chief Legal Officer Paul Grewal said in a opinion piece in the Wall Street Journal on Wednesday.
Delaware judges, however, have expanded the court's most stringent legal standard to a growing range of situations involving controllers, increasing the risk of shareholder lawsuits.
The decisions culminated with the blockbuster ruling last year that rescinded Musk's $56 billion pay package from Tesla. "Never incorporate your company in the state of Delaware," Musk had said on X after the ruling.
"It's a shame that it has come to this, but Delaware has left us with little choice," Grewal added.
Texas has stepped up efforts to attract cryptocurrency firms, touting regulatory clarity and lower operating costs, with recent legislation positioning the state as a growing hub for blockchain development amid uncertainty in other jurisdictions.

Coinbase in the largest publicly traded cryptocurrency exchange in the U.S.

Good. I’m not for protecting corporations but if your state has been a safe harbor for businesses and you start fucking your brand up, you’re going to be losing money fast.

quote:

Crypto exchange Coinbase to reincorporate in Texas, exit Delaware

Heard on the radio today that there are more J.P. Morgan folks in Texas than there are in NYC.
Keep up the bullshit and you deserve what you get BLUE states. You screwed yourselves.

My friends in the financial system a Wall Street have told me since Biden that many of those firms just have a token presence in NYC. The vast majority has shifted their main operations elsewhere. With the elections, they will continue even more so.

quote:

Originally posted by architect:

quote:

Delaware Chancellor Judge Kathaleen...McCormick suggested Musk's package was too large

First time I've heard that one!

Well, how many kids has he fathered by how many different women?