Social media giant Meta, parent company of Facebook, has been in talks with Texas about reincorporating in that state and pulling out of Delaware.
The move by Meta would mirror Elon Musk’s decision earlier this year to move multiple companies out of Delaware, The Wall Street Journal reported Friday.
Meta will keep its headquarters in Silicon Valley, California, regardless, according to the report.
A Meta spokesperson told AFP he could not confirm the Journal report but added the company had no plans to move its headquarters.
Musk moved SpaceX’s incorporation from Delaware to Texas in February, after a Delaware judge invalidated his $56 billion compensation plan at Tesla.
Musk also reincorporated Tesla to Texas and startup Neuralink to Nevada.
In December, Delaware Chancellor Judge Kathaleen McCormick ruled to confirm her January 2024 decision that found Musk was not eligible for a 2018 compensation package then valued at $56 billion, a package that would be worth over $100 billion in value today.
McCormick, a Democrat, said the compensation package was simply too rich, but she did compensate the lawyers who sued Musk $345 million for their legal filings.
At issue for Musk, CEOs of other Fortune 500 companies, and entrepreneurs across the nation is that the Delaware Court of Chancery has become a haven for shareholder lawsuits and left-wing judicial activism.
Musk was not happy with McCormick’s ruling and took to X, writing, “Shareholders should control company votes, not judges.”
Musk reposted other X posts critical of the ruling. One Musk repost stated: “Things to do in Delaware: 1) Leave.”
Musk has also urged other companies to quit Delaware as well.
On X, Musk stated, “Never incorporate your company in the state of Delaware.”
Data suggests Delaware is seeing a drop-off of new incorporations. In 2022, the last year the state released data, Delaware saw a 6% fall in new incorporations.
But some critics of Delaware said the number of companies departing the state has grown significantly, while many new companies are not opting to incorporate there.
The home state of former President Joe Biden, Delaware has come under criticism for its close ties to the Biden family and its political agenda.
Last year, The Wall Street Journal published an article, co-authored by former Attorney General William Barr, lambasting Delaware for embracing far-left environmental, social, and governance policies and attempting to push them on corporations.
Viet Dinh, Fox News former chief legal counsel, complained the network was forced into an unheard-of $787 million settlement with a voting company over its reports relating to the 2020 election.
Dinh said the Delaware court’s rulings “called into question the fundamental fairness and integrity of the Delaware civil justice system.”
Last year, The Hill reported that major corporations are fleeing Delaware as a result of its highly politicized agenda.
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