TripAdvisor’s Planned Nevada Move Puts Delaware in Tricky Spot

Delaware’s Chancery Court is in the awkward position of deciding whether TripAdvisor can move its incorporation to Nevada, another state vying to be a business-friendly destination.

Investors sued in late April to stop the anticipated move. The suit argues Greg Maffei is using his voting power and position as chairman of TripAdvisor’s parent Liberty TripAdvisor Holdings to relocate to a state whose “race to the bottom” laws will better protect company directors from investor suits.

The Chancery Court will want to protect investors from corporate actions that appear rife with directors’ self-interest—as TripAdvisor and Liberty TripAdvisor shareholders allege. But the ...