Delaware
Delaware Supreme Court upholds reforms to curb ‘DExit’ concerns
This story was produced by Spotlight Delaware as part of a partnership with Delaware Online/The News Journal. For more about Spotlight Delaware, visit www.spotlightdelaware.org.
A Delaware law passed last year in the wake of escalating assaults on the state’s corporate brand shielded powerful company leaders from facing certain lawsuits brought by smaller investors.
What it didn’t do was violate the Delaware Constitution, the state Supreme Court ruled on Friday, Feb. 27.
More than three months after hearing arguments, the justices ruled that the corporate law reform – known as Senate Bill 21 – did not strip Delaware’s prominent Court of Chancery of its constitutional authority to decide when a business deal is fair.
“The General Assembly’s enactment of SB 21 falls within the ‘broad and ample sweep’ of its legislative power,” the justices stated.
The ruling ends a bruising fight in Delaware over when the state’s business court should allow small-time investors to interrogate insider deals struck within companies by founders or other business leaders.
The ruling also averts what could have been an embarrassment for the state’s legal and political establishment had the high court overturned the law.
More than a year ago, Tesla CEO Elon Musk — the world’s richest person — was calling on business leaders to move their companies’ legal homes out of Delaware. Musk had launched the campaign, which became known as “DExit,” after a Delaware Chancery Court judge ruled that he could not accept a multibillion-dollar pay package from Tesla.
Just as the campaign appeared to be gaining a foothold, Gov. Matt Meyer, legislative leaders, and Delaware attorneys who represent corporations threw their collective heft behind SB 21.
They argued then that the legislation amounted to a “course correction” that would bring the state’s business courts back into alignment with rulings from a decade ago. Many also said the bill was needed to pacify executives who were considering following Musk’s calls to move their companies’ legal homes out of Delaware.
In response, a cadre of critics — which included national law professors, pension fund attorneys, and a handful of progressives within the Delaware legislature — derided SB 21 as a “billionaires bill.”
Some also argued that the legislation was the latest in a string of recent changes to Delaware corporate law that have shifted the state away from protecting shareholder rights and toward giving greater deference to powerful executives.
Meyer and others SB 21 supporters rejected those characterizations last year. And on Friday, he celebrated the Supreme Court’s ruling.
In a statement, he said the decision affirms that “Delaware is the gold standard locale for global companies to do business.” He also stated that the number of companies that maintain their legal home in Delaware had increased throughout 2025 despite the DExit campaign.
“In short, SB 21 is working, and I’m glad it will continue to be the law,” Meyer said.
The legal arguments for SB 21
When arguing against SB 21 in front of the Supreme Court last fall, one attorney asserted that the new law removed the Chancery Court’s time-honored and constitutional duty to say what is fair – or equitable – in a business dispute.
The attorney, Gregory Varallo, argued that by removing a shareholders’ ability to sue their company, the law reduced what he described as the immutable power of the Court of Chancery to oversee a “complete system of equity.”
During his arguments, Varallo also offered the justices an unusual acknowledgement, stating that he knew that his stance was unpopular — and that he understood “well the pressures on this court.”
The comments were a likely reference to the consensus of big business groups and the state’s political establishment that believed SB 21 was necessary for Delaware to remain the world’s preeminent corporate domicile.
Following Varallo, Washington, D.C.-based attorney Jonathan C. Bond defended SB 21, in part, by characterizing his opponents arguments as unprecedented. If adopted, he said they would imperil several existing Delaware laws that go back decades.
He also argued that changing the rules of corporate law – as SB 21 did – “is the same as wiping out jurisdiction merely because it makes some plaintiff’s claims harder.”
Also arguing in favor of SB 21 during the hearing was William Savitt, an attorney with the Wachtell, Lipton, Rosen & Katz – among the most prominent corporate law firms in the country.
Last spring, Meyer hired Savitt’s firm to represent the state in the legal defense of SB 21 for a budget rate of $100,000. By comparison, Wachtell Lipton charged Twitter $90 million in 2022 to ferry that company through its arduous, four-month-long acquisition by Elon Musk.
Wachtell’s client list also includes Mark Zuckerberg and other Meta executives and board members, who last summer settled a seven-year-long, multibillion-dollar shareholder lawsuit in the Delaware Chancery Court.
During his arguments on SB 21, Savitt said equity as determined by judges must follow the statutes created by the legislature, and “not displace the law.”
“No natural reading of the words (of the Delaware Constitution) support plaintiff’s position,” he said.
Get stories like this delivered to your email inbox by signing up for the free newsletter at spotlightdelaware.org/subscribe.
Wednesday, July 8, 2026 10:19PM
ASTON, Pa. (WPVI) — Summer camps are in full swing, and on Wednesday the Action Cam was in Aston, where kids are getting some hands-on learning at Delaware County Technical School.
Middle school students are exploring career pathways as they build, cook, design and create in state-of-the-art classrooms.
They are doing everything from carpentry to cosmetology.
By the end of camp, the kids will create STEAM-based projects that they can take home.
Copyright © 2026 WPVI-TV. All Rights Reserved.
Across the State Trained AmeriCorps VISTA members will be on-site at 21 Delaware Libraries providing walk-in assistance for digital literacy
DOVER, Del. — The Delaware Libraries today announced the launch of a 10-week summer program aiming to support Delawareans on digital literacy.
The AmeriCorps Digital Literacy Specialists assist the public with computer and technology questions, including completing online applications, navigating websites, and building basic digital skills. As patrons become more comfortable, specialists can introduce them to the many free computer training programs and learning resources available through Delaware Libraries including in-person classes. This project is an initiative of the Division’s Social Innovation Team.
“Libraries are proud to expand their digital literacy specialist supports this summer with a presence in 21 Delaware Libraries,” said Dr. Annie Norman, State Librarian of Delaware. “The digital landscape is ever evolving, and the Delaware Libraries stands at the ready to help Delawareans navigate AI, software skills, social media concepts, and more.”
There is no appointment needed for a meeting or to ask a question to a Specialist.
The Specialists are trained to support many concepts, including:
- Essential Software Skills
- Personalized Assistance
- Workplace Technology
- AI – Understanding & Help
- Basic Computer Skills & Classes
- Social Media Help
- Navigate Internet, Avoid Scams
- Using Tech in Daily Life, Device Help
- Learning Express, Northstar Certification
- And Much More!
Visit DelawareLibraries.org/Digital to view a full schedule of Specialists. For more services visit DelawareLibraries.org/GetConnected!
Delaware Libraries offer specialty library cards for every age group, including a My First Delaware Library Card for birth to age 5, a Super Library Card for children ages 6–12; a Teen Delaware Library Card for ages 13-17 and Delaware Library cards for everyone.
Sign up for a Delaware Library Card today! It’s Easy! It’s Free! It’s Online!
Instructions in Spanish are also available. (En el sitio web de las bibliotecas de Delaware se pueden encontrar instrucciones en español para obtener una tarjeta de biblioteca gratuita de Delaware)
Programming celebrating the Delaware Libraries’ 125th anniversary will continue throughout the year.
Delaware
Talk & Film Bring Delaware’s Revolutionary Story to Life at Archives’ First Saturday Program – State of Delaware News
On Saturday, July 11, 2026, at 10:30 a.m., the Delaware Public Archives will host a special First Saturday Program featuring a presentation and a screening of a new documentary exploring Delaware’s pivotal role in America’s founding.
The event will begin with a shortened presentation of Independence or the Bayonet, examining the critical days leading up to July 1776 through the perspectives of Caesar Rodney, George Read, and Thomas McKean.
Following the presentation, attendees will watch Caesar Rodney’s Ride: The Story of Delawareans and the Declaration of Independence, a new one-hour documentary presented by the Delaware Heritage Commission. The film explores Caesar Rodney’s legendary overnight ride to Philadelphia and the important role Delawareans played in the fight for American independence.
This special program is part of the Delaware Public Archives’ ongoing Delaware 250 educational programming commemorating the 250th anniversary of the Declaration of Independence and highlighting Delaware’s unique contributions to the nation’s founding.
The program is free and open to the public.
For more information about the Delaware Public Archives or to learn more about upcoming events and programs, visit archives.delaware.gov.
-
Lifestyle34 minutes agoAppeals court denies Trump’s request to halt removal of his name from the Kennedy Center
-
Technology42 minutes agoMeta is reportedly working on smart glasses that would be recording all the time
-
World49 minutes agoTrump says ‘Iran lies and cheats’ as IRGC emerges as dominant force in negotiations with US
-
Politics52 minutes agoWho is Valli Geiger? Meet the Maine Dem that Platner urged to run for Senate
-
Health57 minutes agoDeadly Legionnaires’ disease outbreak sparks concern in major US city: Know the symptoms
-
Sports1 hour agoCaitlin Clark’s return falls flat after Fever coach limits her in loss to shorthanded Sparks
-
Business1 hour ago
Commentary: Trump wants to let companies make fewer disclosures, thus keeping investors in the dark
-
Entertainment1 hour agoJustin Baldoni and wife break silence after ‘It Ends With Us’ legal battle with Blake Lively
