CITIZENS FOR JUDICIAL FAIRNESS WARNS DELAWARE LEADERS OF CHANCERY OVERREACH IMPACT TO $2 BILLION CORPORATE ECONOMY AS META PREPARES FOR “DEXIT”

WILMINGTON, Del.--(BUSINESS WIRE)--Today, the Wall Street Journal and the New York Times reported that Meta, a company worth $1.7 trillion, plans to move their incorporation out of Delaware in response to Chancery Court overreach. The move follows the Chancery Court’s most obvious overreaching rulings in the Court’s history when they forced TransPerfect to pay more than $50 million in undocumented legal fees to local law firms and more recently, approved $354 million in fees to law firms in the Tesla case.

Citizens for Judicial Fairness (CJF) released the following statement on the corporate exodus from Delaware:

“Citizens has been raising the red flag for years now that the Chancery Court’s overreaching rulings are becoming more poignant - and more dangerous - with each ruling. Chancellor McCormick and the Chancery Court continue to award exorbitant fees to lawyers while exploiting businesses and their workers. Companies that once flocked to Delaware for its globally renowned courts are now seeking refuge in other states, leaving Delaware's economy to bear the consequences of this misguided judicial shift.

The thousands of Delaware residents and more who have stood with our Citizens group must not only take notice of this troubling trend but also stand up and demand a course correction. Delaware generates billions in revenue from companies choosing to incorporate here, and if we don’t act to protect this vital industry, we risk losing the very foundation that has long supported Delawareans’ economy and livelihoods. Without swift action from Delaware’s legislature, our State’s role as the corporate haven could become a distant memory.”