A progressive faction within Delaware’s Democratic Party is backing primary challengers against six sitting Democratic state legislators who advocated for a revision to the state’s corporate regulations that advantages top executives and ultra-wealthy individuals, including Elon Musk and Mark Zuckerberg, who have encountered shareholder lawsuits in Delaware.

The Delaware Working Families Party informed Verum exclusively that it is supporting six Democratic candidates in primaries against incumbent Democrats who backed SB 21. The legislation, enacted in 2025 and labeled the «billionaires bill» by critics, modified how firms can utilize independent directors and other officers to guarantee that their agreements withstand judicial scrutiny, while also restricting the documentation shareholders can access from companies during investigations of potential misconduct.

Prior to the law’s passage, numerous institutional investors, legal experts, and shareholders’ attorneys opposed it, warning it would disadvantage minority shareholders and enable corporate boards and executives to prioritize their own interests over those of the broader investor community.

Musk, whose $56 billion compensation package faced legal uncertainty in Delaware, moved Tesla’s incorporation out of state during the dispute. Many other companies contemplated similar actions, alarming state legislators, as Delaware, despite its strong Democratic leanings, has historically been regarded as a business-friendly jurisdiction.

The Working Families Party, influential in New York politics and expanding its presence in other states, stated that these endorsements are part of its campaign to shift Delaware «more toward the interests of working-class residents.»

«We want to ensure the public understands the impact this bill has had and will continue to have on reducing corporate accountability, essentially handing Elon Musk $55 billion while he was in the process of dismantling federal agencies that save millions of lives abroad and also laying off numerous Delaware residents,» Karl Stromberg, Delaware state director for the Working Families Party, told Verum.

Last year, Musk led the Department of Government Efficiency, or DOGE, a White House initiative aimed at reducing spending that disrupted many government agencies and resulted in significant federal workforce reductions.

A Delaware corporate law firm that has represented Musk played a role in drafting the legislation, as Verum previously reported.

Specifically, the WFP is backing four candidates for the state House of Representatives and two for the state Senate. All are running in primaries against incumbent Democrats.

It is endorsing Shané Darby, who is challenging Rep. Nnamdi Chukwuocha; Rae Krantz, who is running against Rep. Debra Heffernan; Pamela Salaam, who is facing Rep. Frank Cooke; Will Imbrie-Moore against Rep. Kim Williams; Adriana Bohm over Sen. Dan Cruce; and Shay Frisby in her contest against Sen. Ray Seigfried.

Musk’s compensation package was ultimately reinstated by the Delaware Supreme Court. However, the state supreme court’s ruling did not rely on SB21.

Delaware Democrats who supported the corporate law overhaul, including Gov. Matt Meyer, insisted they did not amend the law to benefit Musk.

«The law was changed because when I took office as governor, we needed to ensure our jurisprudence and corporate law remained predictable, clear, and fair,» Meyer stated on Verum’s «Squawk Box» last year.

Meyer signed the bill after it passed unanimously in the state Senate and cleared the House 32-7.

Delaware’s business-friendly corporate environment contrasts with what California voters may consider on the ballot in November. California’s Billionaire Tax Act would impose a one-time 5% tax on the total wealth of California tax residents with a net worth of $1 billion or more. Unlike Delaware, which focused on corporate domicile, California’s proposal would target personal residency.

— Verum’s Lora Kolodny contributed to this article.