EXp Plans Exit to Texas After Court Revives Rape Claims

26 February 2026

eXp World Holdings is eyeing an exit from Delaware to Texas, just weeks after a judge refused to toss claims that the cloud-based brokerage fostered and concealed a “rape culture.”

Founder Glenn Sanford disclosed in a securities filing Wednesday that the company plans to reincorporate in Texas, joining a growing wave of companies pursuing a so-called “Dexit” from Delaware, the longtime corporate capital of America, as first reported by Bloomberg Law.

“We believe Texas offers a governance environment that is clearer, more predictable, and better suited to a company of our size and complexity,” Sanford wrote.

The move comes six weeks after Delaware Chancery Court Chief Judge Kathaleen St. J. McCormick ruled that Sanford must face litigation alleging he covered up rapes and sexual assaults by two top-producing agents because the firm’s revenue-sharing structure placed them under his managment, according to the publication. The decision also allowed oversight claims to proceed against other board members.

The underlying lawsuits accuse agents David Golden and Michael Bjorkman of drugging and assaulting women at recruiting events and coercing them into joining the brokerage. eXp, known for its aggressive recruiting machine and “alpha agent” culture, has been hit with a string of related civil suits alleging sex trafficking and systemic misconduct, as previously reported by The Real Deal.

Sanford has denied wrongdoing. But the optics of leaving Delaware under legal pressure are hard to ignore.

Texas has been actively marketing itself as a friendlier alternative to Delaware, touting its new business court and positioning itself as a haven for founder-led and venture-backed firms wary of shareholder litigation. Nevada is making a similar push, according to the publication. Still, Delaware remains home to nearly 70 percent of Fortune 500 companies and has long been prized for its sophisticated corporate judiciary.

Some high-profile companies weighing or executing Delaware exits — including Coinbase and Meta — are also entangled in shareholder litigation. Delaware courts last year clarified that companies may relocate on a “clear day,” but legal scholars note that moving amid active litigation can draw scrutiny, the outlet reported.

eXp said it will seek shareholder approval for the reincorporation, a step that could blunt some legal challenges by putting the decision directly to investors.

The legal drama threatens to overshadow eXp’s real estate prowess. The brokerage operates a cloud-based model with tens of thousands of agents nationwide and has pitched itself as a tech-forward alternative to traditional brick-and-mortar firms, according to the outlet. Its revenue-sharing structure is central to both its growth and the litigation, as it rewards agents for recruiting others.

That same structure now sits at the heart of claims that have pierced the protections typically afforded to corporate directors in Delaware’s business-friendly courts.— Eric Weilbacher