Delaware court allows TripAdvisor to reincorporate in Nevada

By Thomson Reuters Feb 20, 2024 | 9:03 AM

By Jody Godoy

(Reuters) -A Delaware judge said on Tuesday that TripAdvisor can go ahead with its planned move to Nevada, though shareholders can also pursue their lawsuit alleging the move unfairly benefits the online travel advice site’s controlling stockholder.

The case has gained attention this month as Tesla CEO Elon Musk posted about it on social media. Musk has said Tesla would hold a shareholder vote to move its legal home from Delaware to Texas in the wake of a ruling invalidating his $56 billion pay package.

Two shareholders sued directors at TripAdvisor and its parent company last year. They claimed the move was designed to benefit Greg Maffei, CEO of parent company Liberty TripAdvisor, at their expense.

The ruling by Delaware Vice Chancellor Travis Laster comes as a committee of Tripadvisor’s board explores a potential sale to an undisclosed bidder.

(Reporting by Jody Godoy in New York and Tom Hals in Wilmington, Delaware; Editing by Chizu Nomiyama)