Delaware Losing $14 Billion Affirm Holdings

Legal ethics is a misnomer ... lawyers conducting themselves legally are not necessarily conducting themselves morally ."...and ..."The zero-sum nature of the legal system, combined with the universal adoption of zealotry as the marching orders of practitioners and prosecutors, transforms the moral mission of the legal system from one of truth-seeking, storytelling, and justice to one of fabrication, distortion, and manipulation in pursuit of victory. These victories, however, make us all losers. - Thane Rosenbaum

Is the State of Delaware not friendly to business? (Dreamstime)

This is an article that appeared in Newsmax online. I found it interesting that in the State of Delaware, Joe Biden's state of residence, which was friendly to big business, was so oppressive that a lot of the big boys are moving on to greener pastures. We are not talking chump change here. Delaware is on course to lose billions.

"Another major e-commerce player is departing from Delaware as corporations pack up and find a new domicile for their businesses.

Affirm Holdings Inc., a publicly held American technology firm with a market cap of about $14 billion, is preparing a move to either Nevada or Texas, reports GuruFocus.

Affirm, founded in 2012 by PayPal co-founder Max Levchin, handles financial services for merchants and shoppers. The company is headquartered in San Francisco but seeking shareholder approval to move its corporate domicile from Delaware.

Levchin, who has voting influence in the company, is reportedly driving the decision to leave the state.

The news about Affirm comes in the wake of Mercado Libre, a leading Latin American e-commerce platform, announcing in a SEC filing its plans to seek stockholders' approval to move its corporate domicile from Delaware to Texas. The Nasdaq-listed MercadoLibre Inc. has a market cap in excess of $100 billion.

State Capitol of Delaware

Several other major corporations have left Delaware or announced plans to leave after a series of controversial judicial decisions, including a judge's decision to deny Elon Musk a $56 billion compensation package from Tesla after shareholders had twice approved the plan.

"Never incorporate your company in the state of Delaware," Musk posted on X after the court's ruling.

Last week, Musk applauded the Mercado Libre push to leave Delaware and said he was not surprised.

"At this point, any lawyer recommending incorporation in Delaware is committing malpractice," he posted on X.

Delaware has for decades attracted businesses because of its well-established legal framework and courts.

The state's reputation as a neutral legal playing ground, however, has changed because of recent court rulings from a left-leaning judicial system.

Other companies recently announcing their moves from Delaware include AMC Networks Inc., the owner of the cable AMC Channel, which plans to reincorporate in Nevada, and Madison Square Garden Entertainment.

Meta is moving

Facebook parent company Meta and Walmart are also reportedly considering moves to Texas or another state.

Other significant companies taking steps to leave Delaware include President Donald Trump's Truth Media, Tripadvisor, The Trade Desk, and Roblox, according to Coastal Network.

Others point to a court action forcing Fox News into paying a staggering $787 million settlement with a voting machine company over reporting relating to the 2020 election.

Viet Dinh, Fox's chief legal officer, commented that court rulings in the state "called into question the fundamental fairness and integrity of the Delaware civil justice system." 1

Resources

1. Fitzgerald, Sandy, Delaware Losing $14 Billion Affirm Holdings, NEWSMAX/Newsfront, April 23, 2025, https://www.newsmax.com/newsfront/affirm-leaving-delaware/2025/04/23/id/1207991/#CommentSection