Law Firm Crackup Comes Amid Anti-Plaintiff Mood in Delaware

There’s never a good time for a law firm to see one of its most prominent partners leave and take several attorneys with him. But this is especially bad timing for Bernstein Litowitz Berger & Grossmann.

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The firm specializes in representing shareholders suing companies in Delaware, the incorporation capital of the world. But ever since Elon Musk reincorporated Tesla outside the state in response to a lawsuit over his pay package—a lawsuit Bernstein Litowitz led—the state has changed its laws to make it harder for shareholder plaintiffs to succeed.

In this episode of our podcast, On The Merits, Bloomberg Law reporters Jennifer Kay and Tatyana Monnay talk about the unusual bitterness Bernstein Litowitz expressed to its departing colleague after he exited the firm. They also talk about why, after the seismic corporate law changes of 2025, it may no longer be as lucrative as it once was to represent shareholders in Delaware.

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