Major corporations rethinking Delware

Investment Analysis Clubs Macro Economic Trends and Risks
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NYT Dealbook by Andrew Ross Sorkin

A fee factory? The study, by the well-known Stanford law professor Joseph Grundfest tallied every shareholder case since 2000 in which lawyers won fee “multipliers” of 7 times (“septuples”) or 10 times (“decuples”) their normal hourly rate from big corporations.

Here’s what it found:

  • Delaware produced 21 septuples and 14 decuples, almost matching the entire federal system on septuples and nearly triple on decuples.
  • One payout for a lawyer practicing before Delaware’s Court of Chancery worked out to an astonishing $35,000 an hour. Some lawyers are walking away with multipliers of 66 times their standard rates.
  • Just two chancery court judges handed out a majority of those supersize awards, so it matters which judge you get.
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The deepest costliest hardest to root out forms of corruption involve cooperating yet independent corrupt persons and institutions. You know, evolution over time via signaling — it’s not just for bees and flowers and humans and pornography, it’s wired into physical reality.

Delaware needs an impossibly rare hit by a big asteroid, or an nationwide uprising of enraged independent investors, and I hate to tell you which is more likely at this point.

We seem to actually stand in need of a revolutionary refounding??!

That nut Jefferson mused on this long ago:

“The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure.”