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Leave Delaware
@LeaveDelaware
Official Home of the DExit Movement. 🇺🇸 FA/FO. If your company is incorporated in Delaware, it’s time to reconsider. DM us to inquire about supporting
加入 August 2024
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🚨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.
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