Delaware

Will plan to revamp incorporation law protect or damage Delaware’s $2B kingdom?

Published

10 months ago

March 5, 2025

Press Room

Will plan to revamp incorporation law protect or damage Delaware’s B kingdom?

From Philly and the Pa. suburbs to South Jersey and Delaware, what would you like WHYY News to cover? Let us know!

In the parlance of Delaware political and legal insiders, “the franchise” is king.

Without the franchise, the state couldn’t pay for public schools, police, prisons, social and health programs, beach replenishment, farm preservation or so much more.

Without the franchise, taxes would be significantly higher, or the state would need to slash services.

The franchise is Delaware’s system, which currently has 2.2 million businesses — and two-thirds of the Fortune 500 — incorporated in the nation’s second-smallest state. Amazon, JPMorgan Chase, Nvidia and the corporate parents of Google and Facebook and Instagram are among about 1,350 Large Corporate Filers who fork over $250,000 apiece in franchise taxes.

All told, those “incorporation revenues” are projected to directly generate $2 billion for the state treasury this year. That accounts for 29% of the state’s general fund revenue.

But today, fear is rampant in Delaware that the business-friendly franchise that some also call the “golden goose” is in serious danger of being cooked — that a mass corporate exodus or “DExit” is imminent.

Trepidation has grown over the last year since Elon Musk pulled Tesla and SpaceX out of Delaware and castigated the Delaware Chancery Court, which has long been considered the franchise’s crown jewel for its deft and reliable resolution of complicated business disputes.

“Absolute corruption,” Musk tweeted in December after the court’s chief judge rejected his $56 billion pay package from Tesla for the second time. The file-sharing platform Dropbox has announced it’s divorcing from Delaware, and other major companies such as Meta Platforms, the parent of social media giants Facebook and Instagram, say they might do the same.

So this month, new Gov. Matt Meyer, legislative leaders and a cadre of legal luminaries decided to neutralize the perceived threat before it gains ground.

Together, they crafted a complex proposal to revamp Delaware corporate law by essentially making it tougher for shareholders to sue founders and top executives for perceived conflicts.

They did so, Meyer and others involved in the process say, to alleviate concerns they are hearing from the nation’s corporate community that Chancery Court has grown increasingly unfriendly to top execs like Musk in mega-dollar cases.

Meyer, a Democrat and lawyer who took office Jan. 21, echoed other supporters when the bill was introduced Feb. 17. “We will protect our reputation and continue Delaware’s tradition of a balanced and measured approach, and we will do so relentlessly,” Meyer said.

Meyer’s concern is magnified by the impact a DExit would have on balancing the $6.8 billion state budget and maintaining public services during his four-year term, especially at a time when President Donald Trump is trying to cut critical federal funding to states.

Delaware needs and wants those $2 billion in incorporation revenues every year, plus a related $420 million the state gets from abandoned financial accounts at banks and other companies registered in the state, Meyer said.

“When one-third of your state’s budget is on the line and you’re eyeing down untold federal budget cuts, you have to make a choice: protect your residents or not. And I choose Delawareans every day,” Meyer said in an interview last week. “Any bill that helps improve our financial stability needs to be considered fully.”

Lawrence Hamermesh, professor emeritus at Widener University’s Delaware Law School and one of the bill’s drafters, said it will restore eroding confidence in corporate circles and prevent “catastrophic” cuts to the state budget.

“Unlike as long as I’ve been practicing and teaching corporate law, there is no longer the inclination to tell clients and to conclude that Delaware is the place to set up your corporation,” Hamermesh said. “That is potentially the source of a tipping point that would be devastating for the state and its taxpayers and workers and everybody here.”

The bill, which has bipartisan support that includes the Senate and House leadership, could become law within a month, said Delaware Senate Majority Leader Bryan Townsend, the chief sponsor.

While the bill currently has no effective date — spurring speculation that it could be retroactive and change the result of cases involving Musk and other executives — state Sen. Townsend said it’s being modified so the effective date would be after it’s signed into law.

Source link

Click to comment

Delaware

Wilmington’s first homicide of 2026 claims life of 19-year-old

Published

2 hours ago

January 9, 2026

Press Room

Wilmington’s first homicide of 2026 claims life of 19-year-old

A 19-year-old man was shot dead in Wilmington’s Southbridge neighborhood in the early hours of Jan. 9, police said.

Wilmington officers arriving to the 200 block of S. Claymont St. about 3:30 a.m. found the teen there.

The teen, whom police have not named, was pronounced dead at the scene.

Anyone with information about this shooting should contact Wilmington Police Detective Derek Haines at (302) 576-3656. People can also provide information to Delaware Crime Stoppers at (800) TIP-3333 or delawarecrimestoppers.com.

Violence by the numbers

This is the first homicide reported this year in Delaware, which last year saw a slight drop in all violent killings.

Delaware police reported 52 people being killed in violent crimes in 2025, a drop of nearly 12% when compared with 59 people killed in 2024, according to a Delaware Online/The News Journal database.

While the number of people killed in homicides statewide is down, the number of people killed by gunfire in Delaware was up in 2025 for the third year in a row.

According to the Delaware Online database, 47 were shot dead in Delaware last year. That was one more victim (46) than in 2024, three more (44) than in 2023 and nine more (38) than in 2022.

Despite the increase in gun-related deaths, there were fewer people shot last year in Delaware for the second year in a row.

Police reported 164 people being shot last year in Delaware. The previous year saw 195 people shot and police reported 210 people being shot in 2023.

This was the fewest people shot in Delaware since 2018, when police reported 146 people being shot statewide.

Send tips or story ideas to Esteban Parra at (302) 324-2299 or eparra@delawareonline.com.

Source link

Delaware

MERR responds to dead humpback whale washed up near Bethany Beach

Published

14 hours ago

January 9, 2026

Press Room

MERR responds to dead humpback whale washed up near Bethany Beach

A dead humpback whale washed up near Bethany Beach on Jan. 8, according to the nonprofit Marine Education Research and Rehabilitation Institute.

The juvenile male was first seen Jan. 6, floating at sea about 2 miles off the Indian River Inlet, a MERR Facebook post said. The bloated 30-foot whale ultimately beached near a private community in the early afternoon of Jan. 8, the post said.

MERR is attempting to coordinate with the Delaware Department of Natural Resources and Environmental Control to get equipment to move the whale out of the water and onto the beach to perform a necropsy, the post said. Right now, there isn’t enough information to determine a cause of death.

Delaware saw at least three dead whales last year, in the Indian River Bay, at Delaware Seashore State Park and at Pigeon Point. The first two were humpbacks, while the Pigeon Point whale was a fin whale.

A necropsy on the Delaware Seashore whale found blunt force trauma across its back, indicating it may have been struck by a ship, MERR Director Suzanne Thurman said.

Recently, on Jan. 4, a dead fin whale was found on the bow of a ship at the Gloucester Marine Terminal in New Jersey, which is located in the Port of Philadelphia on the Delaware River.

Shannon Marvel McNaught reports on southern Delaware and beyond. Reach her at smcnaught@gannett.com or on Facebook.

Source link

Delaware

Pa. man accused of stealing more than 100 skeletons from Delco cemetery

Published

1 day ago

January 8, 2026

Press Room

Pa. man accused of stealing more than 100 skeletons from Delco cemetery

A Pennsylvania man is accused of stealing more than 100 skeletons from a cemetery in Delaware County.

Jonathan Gerlach, 34, of Ephrata, Pennsylvania, is charged with abuse of corpse, criminal mischief, burglary and other related offenses, Delaware County District Attorney Tanner Rouse revealed on Thursday, Jan. 8.

Léelo en español aquí

Between November 2025 and Jan. 6, 2026, 26 mausoleums and underground burial sites had been burglarized or desecrated at Mount Moriah Cemetery, which stretches from Yeadon Borough, Pennsylvania, to Philadelphia, investigators said.

As police investigated the thefts, they caught Gerlach desecrating a monument at the cemetery on Tuesday, Jan. 6, according to officials. Gerlach was taken into custody and investigators executed a search warrant at his home in Ephrata.

During the search, investigators recovered 100 human skeletons from Gerlach’s home as well as eight more human remains inside a storage locker, according to Rouse.

“Detectives walked into a horror movie come to life the other night guys,” Rouse said. “This is an unbelievable scene that no one involved – from myself to the detectives to the medical examiners that are now trying to piece together what they are looking at, quite literally – none of them have ever seen anything like this before.”

Rouse said some of the stolen skeletons are hundreds of years old.

“We are trying to figure out exactly what we are looking at,” Rouse said. “We quite simply at this juncture are not able to date and identify all of them.”

Rouse also said some of the skeletons are of infants and children.

“It is truly, in the most literal sense of the word, horrific,” Rouse said. “I grieve for those who are upset by this who are going through it who are trying to figure out if it is in fact their loved one or their child because we found remains that we believe to be months old infants among those that he had collected. Our hearts go out to every family that is impacted by this.”

Sources also told NBC10 the thefts are related to a similar case in Luzerne County, Pennsylvania. Investigators said they are looking at Gerlach’s online community — including his social media groups and Facebook page — to determine if people were buying, selling, or trading the remains.

Gerlach is currently in custody at the Delaware County Prison after failing to post $1 million bail. Online court records don’t list an attorney who could speak on his behalf.

Source link