Delaware, historically the preferred state for corporate incorporation due to its stable legal environment and favorable corporate laws, is facing challenges that have led some business owners to consider relocating their incorporations to states like Nevada or Texas. This shift comes amid controversy over recent changes to Delaware's corporate law that limit the liability of directors and controlling investors for self-interested corporate actions. The Delaware governor has expressed interest in intervening in a potential midcase review by the Delaware Supreme Court regarding this overhaul. Meanwhile, Delaware's corporate law courts have been noted for awarding class attorney fees that exceed typical federal benchmarks, as highlighted by Stanford Law School researchers. A notable case includes a $1 billion settlement in a fiduciary duty lawsuit related to a $23.9 billion Dell stock swap, marking the largest prejudgment recovery in Delaware Chancery Court history. These developments have prompted legal experts and business leaders to reassess the advantages of incorporating in Delaware.
Delaware's corporation law courts have overshadowed the entire federal court system for some class attorney fees based on multiples of usual rate benchmarks, according to two Stanford Law School researchers. https://t.co/7Z09Xqbgi4 https://t.co/GoqqCFMFfY
Ned Weinberger never expected his clients' suit challenging a $23.9 billion Dell stock swap would reach a $1 billion settlement, let alone result in the largest prejudgment recovery ever achieved in a fiduciary duty action in the Delaware Chancery Court. https://t.co/nXtYKidirH
LAWFARE: If you were considering incorporating your company in Delaware you need to read about Stanford Law Processor and former SEC Commissioner Dr. Grundfest study before you do. Afterward you won't. https://t.co/ZUhZ77Ftto