A Delaware judge allowed sexual assault claims to proceed against Sanford and other members of eXp’s board, and just six weeks later, the company filed paperwork to establish an April vote on moving incorporation to Texas.
Inman On Tour
Inman On Tour Nashville delivers insights, networking, and strategies for agents and leaders navigating today’s market.
A few weeks after a Delaware judge allowed a sexual assault case against leadership at eXp Realty to move forward, eXp World Holdings has filed paperwork with the intent of moving its incorporation from Delaware to Texas.
In a letter from CEO and founder Glenn Sanford that was filed with the Securities and Exchange Commission on Feb. 25, Sanford said the company’s growth in the last year raised “important questions about governance,” which is why the company’s Board is requesting stockholders vote on the move to Texas.
The CEO added, “We believe Texas offers a governance environment that is clearer, more predictable and better suited to a company of our size and complexity. This is not a structural change to how we operate. It is a thoughtful evolution of the framework within which we operate — one that serves the long-term interests of our stockholders, our agents and the business.”
Texas has been working to woo businesses looking to leave Delaware by touting its new business court and overall free market reputation. Some companies have become wary of doing business in the state because of its reputation for litigation and keeping a close eye on corporate governance. Nevada has also become an emerging alternative for businesses looking to leave Delaware.
Six weeks earlier, Delaware Chancery Court Chancellor Kathaleen St. J. McCormick allowed sexual assault claims to proceed against Sanford and other members of eXp’s board, according to an opinion by McCormick from Jan. 16.
No direct link was established between the legal opinion and eXp’s SEC filing, which was reported on by Bloomberg Law, but the timing of the two events may raise questions for some in the industry.
The lawsuit, which was first filed in 2024, details claims of Sanford and other leaders at eXp attempting a cover-up of the company’s “rape culture,” which came to a head after sexual assault allegations about former eXp agents Michael Bjorkman and David Golden went viral in 2020.
EXp leaders “harmed the company by allowing their agents to be harassed, drugged, assaulted, and raped at company events,” the judge’s opinion states. “Some defendants benefitted financially from retaining the perpetrators and actively covered up their conduct. Others failed to respond in good faith to red flags notifying them of the company’s rape culture.”
An internal investigation, which followed a whistleblower reporting the alleged assaults, also amounted to nought since it was led by insiders at the company, the judge’s opinion stated. No meaningful action was taken at the company “until survivors filed anti-trafficking claims against the company in 2023.”
Plaintiffs in the case also argued that Sanford had a financial incentive to keep Bjorkman and Golden on with the company because they were in Sanford’s “downline,” meaning he was compensated when they made sales.
In response to Inman’s request for comment, eXp World Holdings sent the following statement:
The Board of eXp World Holdings, Inc. believes reincorporating to Texas is in the best interests of the Company and its stockholders, providing a governance framework suited to a company of eXp’s size and complexity; a decision arrived at after more than a year of significant deliberation and review. The reincorporation is not expected to result in any change to our business, management, operations, assets, or liabilities. Extensive details about the proposal are described in our proxy statement filed with the SEC.
After a Delaware court rejected a pay package Elon Musk had made with Tesla, the Tesla founder took to social media to warn others about doing business in the state.
Email Lillian Dickerson
Topics: Glenn Sanford | eXp Realty Show Comments Hide Comments Sign up for Inman’s Morning Headlines What you need to know to start your day with all the latest industry developments Sign me up By submitting your email address, you agree to receive marketing emails from Inman. Success! Thank you for subscribing to Morning Headlines. Read Next
Shareholders say eXp mishandled assault allegations in new lawsuit
How Glenn Sanford built eXp into a billion-dollar brokerage
EXp touts 'relentless execution' as it reports growing losses in 2025
Leo Pareja: 'Consolidation begets more consolidation' (WATCH)
More in Brokerage
Cutting through the rhetoric: What the economy really tells us about real estate in 2026
SCOOP: With merger complete, layoffs come for Anywhere and Compass
Arizona family wins Redfin's $1M home in digital scavenger hunt
Leo Pareja: 'Consolidation begets more consolidation' (WATCH)
Read next
Read Next
Bay Area indie Sereno Group merges with Dwell Realtors
Shareholders say eXp mishandled assault allegations in new lawsuit
CoStar lays off staff amid Homes.com cost-cutting campaign
EXp touts 'relentless execution' as it reports growing losses in 2025