‘Growing Tide’ of Shareholder Lawsuits Causing Companies to Sour on Delaware as their Corporate Homes

The Wall Street Journal reports on a number of major corporations who are reconsidering the state of Delaware as their corporate homes.

The reason? “A growing tide of shareholder litigation, which some feel the state hasn’t done enough to curb,” reports the Journal, which also notes last month’s passage of legislation that prohibits corporate fee-shifting by-laws.

Dole’s former chief operating officer, Michael Carter, says the new development is “troubling.” Whereas it had been a “no-brainer” to move the company’s headquarters to Delaware from Hawaii in 2001, some corporations are now asking, “Why are we in Delaware in the first place?”

Read the full story here.