Delaware Court Of Chancery Enforces Texas Forum Selection Bylaw Retroactively

On April 13, 2026, Vice Chancellor Bonnie W. David of the Delaware Court of Chancery granted defendants’ motions to dismiss derivative claims brought by stockholders of Tesla, Inc. (the “Company”) in Delaware. In re Tesla, Inc. Derivative Litigation, C.A. No. 2024-0631-BWD (Del. Ch. Apr. 13, 2026). The Company had redomesticated from Delaware to Texas and, at the same time, adopted a bylaw designating Texas as the exclusive forum for derivative litigation.... By: A&O Shearman