Arkansas Business recently reported on Dillard’s Inc.’s plan to shift its corporate incorporation from Delaware to Texas. As part of the coverage, Scott Sherman, co-chair of Nelson Mullins’ Securities & Corporate Governance Litigation Practice, provided insight into why more companies are considering alternatives to Delaware.

Sherman noted that recent court decisions, rising insurance premiums for directors and officers, and “substantial” attorney fee awards for plaintiffs’ lawyers, among other reasons, have prompted companies to re-evaluate their options. He explained that these factors among others are driving many businesses to explore incorporation in states like Texas or Nevada, which some corporations believe may offer more predictability and reduced litigation risks.

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