Dropbox Co-Founder and CEO Drew Houston discusses the evolution of his company—and changes in tech tools for the workplace—over the past five-plus years. #WSJTechLive#
🚨MORE SHENANIGANS IN DELAWARE
Dropbox left Delaware for Nevada.
Now a shareholder lawsuit in Delaware is asking the Delaware Court of Chancery to undo the move and force Dropbox back.
The complaint alleges Dropbox moved to Nevada to reduce litigation risk and protect its founder and directors from potential Delaware claims.
Read that again:
A company leaves Delaware because of litigation risk—and gets sued in Delaware for leaving.
The plaintiff is asking the court to:
• Rescind the Nevada reincorporation
• Restore Dropbox’s Delaware domicile
• Or award damages for the company’s decision to leave
This is the clearest illustration yet of Delaware’s problem.
Companies are supposed to voluntarily choose the best legal jurisdiction.
They should not face years of litigation because they chose an alternative.
Every founder, board member, investor and general counsel considering Delaware should watch this case.