Delaware’s federal court forced litigation funders into the open. Its most important court still lets them hide | Fortune

Virtu Financial announced it is moving its legal home to Texas, escalating the debate over Delaware’s corporate franchise. The commentary argues that Delaware’s federal court has forced litigation funders to disclose their stakes, while the state’s Court of Chancery still permits them to remain hidden. That gap matters because undisclosed funders can shape shareholder suits that influence corporate behavior and settlement costs. The authors, Jeffrey Sonnenfeld and Steven Tian, contend that transparency should extend to the Chancery, Delaware’s key venue for corporate disputes. Watch whether other companies follow Virtu’s move and whether Delaware tightens disclosure rules to defend its incorporation business.