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Texas, Oklahoma and Nevada make changes to lure business amid Delaware’s ‘Dexit’ concern – WTOP News

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Texas, Oklahoma and Nevada make changes to lure business amid Delaware’s ‘Dexit’ concern – WTOP News


CLAYMONT, Del. (AP) — Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip…

CLAYMONT, Del. (AP) — Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip into the lucrative side of corporate litigation that Delaware, with a specialized court and business-friendly laws, has dominated as the world’s incorporation capital.

Concerned that these changes may lure corporations away from Delaware, thereby causing the small state to lose millions in corporate franchise taxes, Delaware officials have responded with their own changes to solidify their status in the business world.

In Texas, which opened a business court last year, there was bipartisan support for legislation diminishing shareholder powers and giving businesses more legal protections against shareholder lawsuits. Nevada lawmakers approved a corporation-friendly update to its business laws, also with bipartisan support, and separately moved toward asking voters to consider changing the state constitution to create a dedicated business court with appointed judges.

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Billionaire Elon Musk had advocated both states as better options for incorporation after a Delaware judge struck down his shareholder-approved $56 billion compensation package from Tesla. Musk’s businesses have also changed where they’re incorporated: Tesla and SpaceX relocated to Texas, while Neuralink moved to Nevada.

Oklahoma also took action to get in the mix, as the Republican-led Legislature sanctioned the creation of business courts in its two most populous counties, a move the governor said would help Oklahoma become the most business-friendly state.

“This is an area in which states, in many ways, are behaving like businesses,” said Robert Ahdieh, dean of the Texas A&M University School of Law. “Delaware is selling something. Texas is selling something that they hold out to be better. So it is very much a comparative exercise.”

Concerns about a ‘Dexit’

Since 2024, several billion-dollar companies including TripAdvisor and DropBox have relocated to Nevada. More than a dozen others, including the AMC theater chain and video game developer Roblox Corporation, have announced plans to incorporate there this year. Latin American e-commerce giant MercadoLibre filed a request for shareholders to approve a Texas relocation in April, citing Delaware’s “less predictable” decision-making process — a common thought among exiting companies.

Amid concerns about more companies reincorporating elsewhere in a so-called “Dexit,” Delaware passed its own legislation to help protect its status as the corporate capital, limiting shareholders’ access to records and increasing protections for leadership. Opposition dubbed it “the Billionaire’s Bill.”

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“Ultimately, I think the damage is done because businesses successfully undermined shareholder rights in Delaware,” said Corey Frayer, director of investor protection at Consumer Federation of America, who argues that the Delaware bill was a rash acquiescence to “Dexit” concerns.

However, some business law experts, like Ahdieh, say the average shareholder is focused on increasing their returns and does not care about shareholder power or where the company is incorporated.

Delaware Gov. Matt Meyer has vowed to win back companies that leave, arguing his state’s experience “beats going to Vegas and rolling the dice.”

Less predictability

Companies flock to Delaware for its well-respected Court of Chancery, a sophisticated and separate forum focusing on equity, corporate and business law. This incorporation machine generates $2.2 billion annually, about one-third of the state’s operating budget.

There is comfort in working in the familiarity of Delaware law, said Ahdieh, but that predictability has come into question in the last decade as corporate leaders grew unhappy over losing precedent-setting court decisions governing corporate conflicts of interest.

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Widener University Commonwealth law school professor Christian Johnson acknowledged a shift in Delaware but said reincorporating elsewhere might be “a bit of an overreaction.” Although a few big-name companies have moved, there are still more than 2 million legal entities incorporated in Delaware, including two-thirds of the Fortune 500.

Statutes in Texas and Nevada may appear more flexible, but they have not been extensively tested, and their courts are not as experienced working with the larger entities that favor Delaware, Johnson said.

Protections in Texas

In May, Texas Gov. Greg Abbott signed legislation providing greater securities for corporate officers and adding restrictions to shareholder records requests. The bill also allows corporations to require an ownership threshold, no more than 3% in outstanding shares, before a shareholder can initiate a derivative lawsuit, typically on behalf of the company and against its own board or directors.

Restrictions on who can initiate such lawsuits are not uncommon, but Texas’ implementation imposes a “far higher barrier than the norm,” Ahdieh said.

Consumer advocates worry the changes endanger shareholder and investor protections by giving owners and directors more protection against lawsuits that could hold them accountable if they violate their fiduciary duty.

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For businesses, the changes mean potentially saving millions of dollars in shareholder lawsuit settlements and legal fees by mitigating the likelihood of those costly cases reaching court. For the states, attracting the companies means millions in business activity and revenue from regulatory filing and court case fees and taxes.

New courts

Eyeing a piece of that, Oklahoma is on pace to establish its recently approved business courts in 2026.

“I’m trying to take down Delaware,” said Oklahoma Gov. Kevin Stitt, a Republican. “We want to be the most business-friendly state.”

Nevada wants to compete, too. It has run business dockets in Washoe and Clark counties since 2001, and it’s in the state’s interest to expand operations considering its fast-growing economy and population, said Benjamin Edwards, a University of Nevada, Las Vegas law professor who studies business and securities law.

But he said it could take decades to build up a court comparable to Delaware, which has a valuable reputation for handling cases relatively quickly.

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Nevada’s proposed business court wouldn’t take effect until 2028 at the earliest and would require amending the state constitution, which would need approval by the 2027 legislature and voter approval in 2028 to allow for the appointment of judges.

___

Associated Press reporter Marc Levy in Harrisburg, Pennsylvania, contributed to this report.

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© 2025 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.

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NEVADA VIEWS: Planning for a resilient economic future

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NEVADA VIEWS: Planning for a resilient economic future


Southern Nevada has a proud history of competing — and winning — through boldness and reinvention. We have developed a world-class tourism economy, built globally recognized brands and demonstrated our ability to rebound from significant disruptions. In today’s fiercely competitive global economy, however, we must intentionally design the next chapter of our economic story. Communities worldwide are continuously enhancing their sophistication, and we must keep pace.

Since joining the Las Vegas Global Economic Alliance in late August of last year, I have consistently heard from community partners that we must diversify and enhance Southern Nevada’s economy. Our goal is to build upon and complement the strengths we already possess.

To achieve this, the alliance, as Southern Nevada’s regional economic development organization and designated Regional Development Agency, is embarking on a comprehensive strategic planning process. This initiative will guide our economic development priorities both in the near and long term, ensuring that we focus on areas that will yield the most positive impact.

The alliance has a history of reinvention, having been established in 1958 as the Southern Nevada Industrial Foundation, later becoming the Nevada Development Authority, and since 2011, operating under its current name in partnership with the Governor’s Office of Economic Development.

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Economic development extends beyond merely attracting companies. It encompasses the ability of local families to access high-wage careers, the opportunity for young people to build their futures at home and the resilience of our economy to withstand disruptions.

Over the past decade, Southern Nevada has made significant strides toward economic diversification, with investment outcomes in 2025 surpassing those of 2024. However, our work is far from complete. While tourism will always be a foundational strength and source of pride for our region, over-reliance on any single sector poses risks. A diversified economy enhances stability, and stability creates opportunities. We are united in our desire for more accessible housing, expanded health care and education, and greater upward mobility for our residents.

This strategic planning effort aims to ensure that the alliance and its partners concentrate on the right initiatives in the right manner. It will validate the region’s target industries and subsectors, narrowing our focus on areas where Southern Nevada has genuine competitive advantages and long-term potential. The planning process will include community interviews, focus groups and surveys to ensure our final strategy reflects the real opportunities and challenges facing Southern Nevada. We will establish flagship goals and a prioritized strategy matrix to direct our attention and resources toward meaningful outcomes.

A crucial aspect of this process involves clarifying roles within the broader economic ecosystem. Economic development is a team sport — when organizations replicate efforts, operate in silos or compete for recognition, the region loses valuable time and credibility, allowing opportunities to slip away. I have witnessed this behavior in various markets, serving as a red flag for prospective companies.

We have already made strides in building partnerships, exemplified by a Memorandum of Understanding signed in November 2025 with the Economic Development Authority of Western Nevada to jointly support economic development education and advocacy for community leaders statewide.

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Our strategic work will also include a organizational assessment of the alliance, evaluating our mission, resource deployment and engagement model. Economic impact requires operational excellence and measurable execution. Most importantly, this plan — which we anticipate completing by late April — will feature a three-year road map with clear timelines, recommended actions and meaningful metrics to transparently track our progress. A longtime mentor of mine often said, “What gets watched gets measured, and what gets measured gets done.”

Las Vegas has always taken the initiative to shape its own future. This strategic plan presents an opportunity for us to do what we do best: come together, think bigger, act smarter and create something lasting. Together, we can build a purposeful and resilient economic future for Southern Nevada.

Danielle Casey is president and CEO of the Las Vegas Global Economic Alliance.



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Nevada State Police averts ‘udder chaos’ in Eureka County

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Nevada State Police averts ‘udder chaos’ in Eureka County


EUREKA COUNTY, Nev. (KOLO) – On Friday, Feb. 27, the Nevada State Police assisted with a cattle crossing on State Route 306 at Interstate 80 in Eureka County.

“While not an everyday part of our job, we like to do our part to assist our local ranchers while keeping traffic from turning into udder chaos,” according to an agency Facebook post. “It was a perfect opportunity to be outside (even if our animal friends were a little moo-dy).”



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Nye County Sheriff urges caution after deadly month on rural Nevada roads

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Nye County Sheriff urges caution after deadly month on rural Nevada roads


A string of deadly crashes in and around Pahrump has prompted Nye County Sheriff Joe McGill to push for more safety measures along dark, sidewalk-free roads.

“The worst penalty is death, if you consider that,” McGill said.

The recent deaths include a single-vehicle rollover on State Route 160 during the morning hours of the last Wednesday in January that killed one person and injured another.

Then, into February, two pedestrians were killed in less than three days.

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The first was a 7 p.m. crash on Quarter Horse Avenue. Investigators believe a 2006 Jeep Liberty was driving on the street when it hit a pedestrian, who was pronounced dead at the scene.

A few days later, this last Saturday, state troopers responded to a crash just after sundown at Charleston Park Avenue. A sedan hit a pedestrian, who was also pronounced dead at the scene.

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Nevada State Police investigators are still investigating both pedestrian cases before more details are released.

McGill said the recent crashes were enough to spur action.

“When the third one came out, I was sitting at home and watching TV. I looked at my wife and I said, ‘We got to do something about this,’” McGill said.

McGill is responding with a reflective vest giveaway, pointing to limited infrastructure as a possible factor. He noted a lack of street lights off State Route 160 and no sidewalks inside the community.

“The only light that you have is the ambient light from houses and cars so it is really dark,” McGill said.

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John Treanor of AAA Nevada said poor visibility can quickly turn dangerous for both drivers and pedestrians.

“It is very easy to be confronted with a situation that you cannot see coming because the visibility might be bad,” Treanor said.

Treanor encouraged pedestrians to carry lights and drivers to be prepared if they end up outside their vehicles in dark conditions.

“Having lights on you. Even carrying a flashlight allows something where a driver can see it,” Treanor said. “If you are a driver, make sure you have the right stuff in your car, in case you do get in a situation where you are on the side of the road and now you are in dark. Make sure you have a kit with some reflectors, some lights. Anything the trunk of your car in case you need it.”

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McGill said vigilance is important even in daylight.

“Any time of the day, you have got to be vigilant. You have to keep aware of your surroundings if you are a walker or on a bicycle or if you are the driver,” he said.

Authorities also urged caution as more people may pull off roads in rocky areas along the route toward Death Valley National Park during springtime blooms, increasing the need for drivers and pedestrians to stay alert.

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