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.  

Gray Reid has spent most of his career in basketball and sports media. He began as a student manager for the Nevada men’s basketball team, then went on to coach overseas in China and later joined the LC State men’s basketball program as a graduate assistant. After coaching, Gray joined SBLive Sports as a videographer and video editor, eventually moving into his current role as Regional Marketing Director.

After a huge ratings boost in the updated Rivals300 rankings that now has Joakim Gouda as a top-30 prospect in the 2027 class, the Florida Gators remain in contention for the elite Georgia linebacker despite an apparent leader in his recruitment.

Gouda, once unranked by Rivals, is now the second-highest-rated linebacker in his class. He has seen multiple expert predictions to land with Kirby Smart and the in-state Georgia Bulldogs recently. However, the Gators have consistently been in the mix for the athletic backer under Jon Sumrall, with both schools making his top five, as well as Texas, Auburn and Alabama, and official visits scheduled to all remaining contenders. 

Despite the smoke around Georgia, Florida will still have a strong shot at the 6-foot-2, 225-pound defender with plenty of time left before his decision is officially made. 

“Florida is definitely still strongly in the race,” Gouda told Florida Gators on SI. “I’m just focused on building relationships and taking my time. I’m not rushing a commitment — I want to make the best decision for me and my future.”

Though the Gators offered Gouda only just over two months ago, Florida has wasted no time in aggressively pursuing the talented athlete, who is expected back on campus for a visit this spring on top of his scheduled official visit from June 4 to June 6. While still somewhat early in the building of a relationship, the new staff member has stood out. 

“Florida sits in my top 5 because I really like the program and the energy around it right now. Even with a lot of competition, I believe in my ability to compete and contribute.” Gouda said. “I think I could fit in well with Sumrall and the new staff because I’m coachable, hardworking, and focused on team success. I like their energy and vision for the program, and that’s earned them a real chance in my recruitment.”

Florida’s chances will rely heavily on the next few months, however, as Gouda goes through his visits looking for the best program fit amongst multiple premier options. With a long way to go till signing day, the Gators will have plenty of time to prove to the elite prospect that they meet his criteria.

“From Florida, I’m looking for a staff that truly believes in me, a system where I can develop, and a culture that feels like family,” Gouda said. “A program will earn my commitment by showing consistency, developing players, and giving me the best opportunity to grow on and off the field.”

After making 100 tackles during junior season at South Pauling High School (Ga.), Gouda is expected to surge up recruiting rankings as he heads toward a decision next year. While becoming one of the largest risers in his class as of late, the four-star is not getting complacent.

“The attention on Rivals feels good because it shows people are noticing my work,” Gouda said. “…I think it’s just a result of staying consistent and improving every day, but I’m still keeping my head down and grinding.”

The Gators will likely be in it till the end for the potential future five-star Gouda, with Sumrall and staff looking to fight off Smart in his home state and land one of the more exciting prospects at his position in 2027.

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