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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.

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 This material may not be published, broadcast, written or redistributed.

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Nevada

GOP primary for open US House seat and Democratic governors race highlight Nevada ballot

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GOP primary for open US House seat and Democratic governors race highlight Nevada ballot


LAS VEGAS (AP) — Nevadans are choosing their party nominees Tuesday for two closely watched congressional seats and the governor’s race, among others, as the state grapples with an affordable housing shortage, exploding energy demand from data centers and federal cuts to key state programs.

The state has a closed primary, meaning only registered Democrats and Republicans will vote in party contests after an effort to open them up failed in 2024.

Several primaries feature matchups between candidates backed by party leaders and political outsiders promising change. Come November, the governor’s race is considered one of the most competitive in the country, and holding on to the 3rd Congressional District is considered crucial for Democrats’ hope of retaking the U.S. House.

Here’s a look at the most prominent races:

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Democrats seek a rival for Lombardo

Gov. Joe Lombardo, a Republican, is considered one of the most vulnerable governors in the country this fall.

The Democrats vying to challenge him include state Attorney General Aaron Ford, who has the backing of the Democratic congressional delegation and former Vice President Kamala Harris, and Alexis Hill, a county commissioner in northern Nevada who campaigned as a candidate willing to shake things up.

They focused their campaigns on affordability, as the state continues to see a shortage of affordable housing, some of the highest gas prices in the country and cuts to federal healthcare and food assistance programs.

Ford largely ignored Hill, instead directing his attacks at Lombardo and arguing that both the governor and Trump are responsible for Nevadans’ economic woes. He is trying to become Nevada’s first Black governor.

2nd Congressional District

In the Republican contest to replace longtime Rep. Mark Amodei, who is retiring, President Donald Trump has endorsed David Flippo, a loyalist of the president who has never held elected office. Amodei and Lombardo have backed James Settelmeyer, a former state senator with a long political track record.

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The district covers northern Nevada and includes Reno and Carson City, the capital, along with an immense rural expanse.

Trump-endorsed candidates have seen successful in primaries elsewhere, underscoring his unrivaled power over the Republican Party as he enters the last years of his presidency. He easily won the district in the 2024 presidential election.

The GOP nominee has a good chance of winning in November, as registered Republicans outnumber Democrats by 70,000 in the 2nd District. A Republican has held the seat since the district was created in the 1980s.

Still, Democrats hope to entice the large number of nonpartisan voters in the district this fall. Their candidates include Teresa Benitez-Thompson, a former majority floor leader of the Nevada Assembly, and Greg Kidd, an investor who ran in the last cycle as a nonpartisan.

3rd Congressional District

Nevada’s other three members of Congress, all Democrats, are expected to win their primaries easily.

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In the 3rd District, Republicans are battling to determine who will face Democratic Rep. Susie Lee in what is considered the most competitive congressional district in Nevada because of its narrow Democratic registration advantage, its high number of nonpartisan voters and a history of razor-thin election margins. In 2024 both Lee and Trump won narrowly.

Candidates include Trump-backed Marty O’Donnell, a composer who worked on the “Halo” video game series and ran unsuccessfully for the seat in 2024; Jeff Gunter, a dermatologist and former ambassador to Iceland; neurosurgeon Aury Nagy; and businessperson Tera Anderson.

The candidates ran on border security, energy independence and decreasing the federal debt.

Attorney general

With Ford term-limited and running for governor, the opening has prompted competitive primaries for the state’s top law enforcement post.

The Democratic side features state Senate Majority Leader Nicole Cannizzaro and Treasurer Zach Conine. Both campaigned on promises to take on the Trump administration, following in the footsteps of Ford, who filed numerous lawsuits against the federal government.

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For the Republicans, Trump-backed attorney Adriana Guzmán Fralick faces Douglas County commissioner Danny Tarkanian. Tarkanian, son of legendary University of Nevada, Las Vegas basketball coach Jerry Tarkanian, previously ran unsuccessfully in multiple congressional races.

Both candidates campaigned on “election integrity,” casting doubt on voting security. Nevada is one of the swing states in which Trump falsely claimed the 2020 election was stolen, despite officials finding no evidence of widespread fraud.

Tarkanian promised to investigate voter fraud allegations, while Guzmán Fralick vowed to seek passage of the SAVE Nevada Act, which would be similar to changes Trump has sought at the federal level.

Her legislation would require all votes to be counted on Election Day, end universal mail ballots and eliminate automatic voter registration. It would almost certainly hit a dead end in the Democratic-controlled Legislature.

GOP secretary of state candidates question Nevada’s elections

Several Republicans are running for secretary of state, the office that oversees elections, including some who falsely claimed the 2020 election was stolen from Trump. The winner of the primary will take on Democratic Secretary of State Cisco Aguilar.

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The GOP candidates include Jim Marchant, a former state lawmaker and perennial candidate who has said the 2020 election “was probably stolen”; Sharron Angle, a former state lawmaker who was part of an effort to block the certification of Nevada’s 2020 election results; and Shirley Folkins-Roberts, an attorney who received Lombardo’s endorsement and has denied there is widespread fraud in Nevada’s elections.

All the candidates support implementing voter ID, which will be on the ballot for the second time in November after the question passed by a wide margin in 2024.

Angle promises to enforce voter ID if voters pass it and supports Trump’s executive order seeking to require documentary proof of citizenship to vote. The courts have so far halted that order, issued last year, from taking effect.

Marchant wants to eliminate electronic voting machines and end the state’s universal mail ballot system. He also wants to require paper ballots, which would be counted by hand, according to his campaign website.

Folkins-Roberts said she will work to keep voter rolls accurate and up-to-date, require voter ID and ensure that election results are delivered on time. She also wants to reverse the automatic voter registration system. In an interview with News 4 Reno, Folkins-Roberts said she believes Nevada’s elections are “good,” but wants to improve voters’ confidence by making changes.

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Nevada

Red Flag Warning issued for heightened fire danger in Southern Nevada

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Red Flag Warning issued for heightened fire danger in Southern Nevada


We’ll start the week with a heightened fire danger with dangerous heat later this week.

TODAY

Expect mostly sunny skies with winds picking up again on Monday. High temperatures will reach 98 degrees in Las Vegas with south winds 10-20 mph and wind gusts up to 30 mph.

A RED FLAG WARNING is in place from 10am to 9pm Monday for gusty winds and dry weather, so if a fire started, it would spread quickly.

Winds are estimated to be 20-25 mph with gusts around 40 mph at times with relative humidity of 5%-15%.

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Air quality is ranked ‘good’ to ‘moderate’ for dust and tree pollen. The most common pollens are juniper, cedar, willow, sycamore and palm.

TONIGHT

We’ll see variable clouds this evening with skies going from mostly cloudy to mostly clear overnight.

Wind gusts will pick up again before midnight with gusts 30-40 mph possible downslope of the Spring Mountains in the west valley.

Elsewhere, gusts will be 20-30 mph. Breezes will eventually back down to 5-15 mph overnight. Valley lows will drop to around 74 degrees.

WHAT’S NEXT

We have reached 109 consecutive days without measurable rain in Las Vegas.

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No rain is in sight, but for perspective, June is the driest month of the year in Las Vegas. Fingers crossed on a hopefully more active monsoon season!

High pressure builds next with highs 5-10 degrees above normal. Temperatures will reach around 108 degrees in Las Vegas by Friday. The last time we hit a high temperature of 108 degrees was back on August 20th of last year.

Not much relief is in sight by the weekend with highs around 107 degrees and temps at or above 105-106 degrees NEXT Monday through Wednesday.



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Nevada

DNA Doe Project unlocks cold case in Nevada

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DNA Doe Project unlocks cold case in Nevada


Growing DNA databases continue to unlock decades-old cold cases. How the DNA Doe Project helped to identify remains 37 years later.


Posted
6/8/2026, 2:51:05 AM

© KSNV, NBC News Channel

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