My original title for this piece was going to be something about a “woke”Delaware judge and the consequences for Joe Biden’s state of Delaware … however, the present title seemed more appropriate.
Most of what follows is from HotAir of 2/3/25:
Remember last year when an activist Delaware judge invalidated Elon Musk’s compensation package at Tesla–twice–despite it having been overwhelmingly approved by stockholders–twice?
From X:
Instead, she ordered Tesla shareholders to pay $345 million in legal fees to attorneys representing the plaintiff, who owned just nine shares of the company.
Judge McCormick previously ruled against
@elonmusk. during his acquisition of Twitter.
Before becoming the head of the Delaware Chancery Court, McCormick worked at the Delaware law firm Young Conaway. For decades, this firm and its employees have been large donors to President Joe Biden.
No wonder everybody in corporate America freaked out. If you are targeted by politicians, your entire business could be destroyed.
Yeah, well, FAFO.
Major corporations are fleeing Delaware so fast that the governor himself is squealing and looking for a way to repair the reputation of the state as the most corporate-friendly in the nation.
The Delaware Governor has responded to companies leaving Delaware:
“It’s really important we get it right for Elon Musk or whoever the litigants are in Delaware courts,”—”We’re cognizant that there may be some things that need to change. We’re going to work on them.”
– Matt Meyer, Delaware Governor
As a consequence of Judge McCormick’s outlandish ruling, here is a list of companies that have moved their corporations out of Delaware based on recent reports and posts on X:
Tesla
SpaceX
The Boring Company
Neuralink
X Corp.
Tripadvisor
Meta
Fidelity National Financial
NewsMax
Sonoma Pharmaceuticals
Bill
Dropbox
TransPerfect
Somewhere around 15%-20% of Delaware’s budget comes from corporate franchise taxes.
Delaware has long been considered a business-friendly state due to its corporate tax advantages, and is home to multiple large companies. However, backlash against the First State has intensified after Delaware Judge Kathaleen McCormick ruled that Tesla CEO Elon Musk’s record-breaking $56 billion compensation package was excessive.
Now, the opposite is the case, all due to the attack on Elon Musk as part of the vendetta a single judge had against him.
Musk, who has become increasingly influential in both the political and corporate world, urged companies to pull out of the Democratic-led state. In February 2024, he announced that SpaceX was relocating its incorporation from Delaware to Texas, following Tesla’s corporate move from California to Texas in 2021.
This appears to be the perfect real day example of “FAFO!
(F*** Around, Find Out” … or the PG version “Fool Around, Find Out”)😉😉
2/6/25