eXp World Holdings has announced plans to move its incorporation from Delaware to Texas, following a court decision that allowed lawsuits alleging the company concealed and enabled sexual assault to proceed.
Glenn Sanford, eXp’s founder, revealed the proposed move in a securities filing. “We believe Texas offers a governance environment that is clearer, more predictable, and better suited to a company of our size and complexity,” Sanford stated.
This announcement comes six weeks after Delaware Chancery Court Chief Judge Kathaleen St. J. McCormick ruled that Sanford must face litigation accusing him of covering up rapes and sexual assaults by two agents under his management due to eXp’s revenue-sharing structure. The court also allowed claims against other board members related to oversight.
The lawsuits allege that agents David Golden and Michael Bjorkman drugged and assaulted women at recruiting events, coercing them into joining the brokerage. eXp has faced multiple civil suits claiming sex trafficking and systemic misconduct.
Sanford has denied any wrongdoing. However, the timing of eXp’s planned departure from Delaware amid ongoing legal action has drawn attention.
Texas has recently promoted itself as an appealing alternative for corporate headquarters with its new business court system, aiming to attract founder-led and venture-backed firms concerned about shareholder litigation. Nevada is making similar efforts. Despite these moves, Delaware remains home to nearly 70 percent of Fortune 500 companies due to its established corporate judiciary.
Other high-profile companies such as Coinbase and Meta have considered or enacted similar relocations while dealing with shareholder lawsuits. Legal experts have noted that moving during active litigation can raise questions about motivation for such decisions.
eXp will seek shareholder approval before reincorporating in Texas—a step that may reduce some legal risks by giving investors direct input on the decision.
The ongoing legal issues have overshadowed eXp’s operations as a large cloud-based real estate brokerage with tens of thousands of agents across the country. Its revenue-sharing model—designed to incentivize recruitment—has been central both to its growth strategy and recent legal challenges involving director liability protections in Delaware courts.
