New York State Comptroller Thomas DiNapoli is calling on eXp Realty shareholders to block the company’s plan to move its state of incorporation from Delaware to Texas, arguing that the brokerage should address internal culture issues rather than seek a more favorable home base.
The pushback comes after allegations of sexual assault and related shareholder litigation put the cloud-based brokerage under intense scrutiny, according to the New York Times. DiNapoli framed the brokerage’s move as an attempt to sidestep accountability.
eXp, one of the largest residential brokerages in the country, has faced three separate lawsuits tied to conference and recruiting-event conduct. Two filed in California in 2023 and another filed in Florida last year saw women allege the company enabled a pattern of drugging and rape around those events.
The allegations largely center on two former agents — Michael Bjorkman and David Golden — who were reportedly high earners generating significant revenue for the firm. The lawsuits allege the company allowed them to remain affiliated with eXp well after leadership was alerted to complaints about them.
The controversy spilled into corporate governance when two shareholder pension funds filed suit in Delaware, where eXp’s parent company is incorporated. The complaint accuses the company of risking investor value through a “purposeful decision to ignore reports of criminal abuse.”
After a judge allowed that case to go forward, eXp founder and chief executive officer Glenn Sanford announced the company would reincorporate in Texas, which is widely viewed as a friendlier jurisdiction for companies facing shareholder challenges than Delaware, long the default for corporate domiciles.
In a statement urging shareholders to vote down the move, DiNapoli said investors have an obligation to hold eXp accountable. That includes the New York State Common Retirement Fund, which held nearly 27,000 shares of eXp’s parent company at last glance.
Responding to the missive, an eXp executive said in a statement that the Texas reincorporation dates back months before Sanford’s announcement and claimed an outside investigation “did not substantiate the claims that company leadership was aware of and failed to act on allegations of assault.”
A vote on the reincorporation is set for the end of next week at the company’s annual meeting. A majority of shareholders would need to approve the move.
Read more
eXp plans “Dexit” to Texas from Delaware after court revives “rape culture” claims
Former eXp broker files sexual assault lawsuit against the firm
Glenn Sanford back in the CEO saddle at eXp
