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Corporate Counsel Piercing the Corporate Veil

Latham & Watkins LLP

Decentralized Autonomous Organizations: Piercing the Digital Veil

Latham & Watkins LLP on

A complaint filed in federal court will test the boundaries of protection from liability for individuals behind decentralized autonomous organizations. On May 2, 2022, a putative class action was filed in the US District...more

Husch Blackwell LLP

Delaware Court of Chancery Reaffirms LLC Member Protections

Husch Blackwell LLP on

Delaware has long been a preferred jurisdiction for business formation, partly because of its well-developed body of case law with respect to commercial disputes (which makes predicting the outcome of – and thus resolving –...more

Manatt, Phelps & Phillips, LLP

Employee/Officer Held Personally Liable for Patent Infringement

In Lubby Holdings LLC v. Chung, the Federal Circuit held corporate officers and employees who actively assist with their corporation’s infringement may be personally liable for inducing infringement even without any piercing...more

Allen Matkins

California Court Addresses Outside Reverse Veil Piercing Of Chimeric LLC

Allen Matkins on

Reverse veil piercing involves subjecting an entity to the liabilities of its owner. As Professor Bainbridge has noted, there are two types of reverse veil piercing...more

Conyers

Piercing the Corporate Veil, or ‘Alter Ego’ liability, in the Cayman Islands, Bermuda, and the British Virgin Islands

Conyers on

Creative attempts to ‘pierce the corporate veil’ sometimes come before the Courts of Bermuda, the British Virgin Islands, and the Cayman Islands. In some cases, an attempt is made to establish personal liability on the...more

Dorsey & Whitney LLP

Reverse Veil Piercing

Dorsey & Whitney LLP on

Under Delaware law, the doctrine of “piercing the corporate veil” has traditionally been used only in circumstances where there has been serious misconduct, and in such cases the Delaware courts have only applied this...more

Snell & Wilmer

Delaware Court of Chancery Adopts Reverse Veil-Piercing

Snell & Wilmer on

In a case of first impression in Delaware, the Court of Chancery adopted the equitable doctrine of reverse veil-piercing1 in Manichaean Capital LLC v Exela Technologies Inc., a post-merger action to enforce an appraisal...more

Bracewell LLP

Reverse Veil-Piercing Endorsed by Delaware Chancery Court

Bracewell LLP on

A recent decision in the Delaware Chancery Court broadens the risk of inter-corporate liability by endorsing the theory of “reverse” veil-piercing, where a plaintiff can reach down to the assets of a parent company’s...more

Allen Matkins

Should Insider Reverse Veil Piercing Be Applied To Protect Constitutional Rights?

Allen Matkins on

Last Friday's post addressed Vice Chancellor Slights' novel ruling that outsider reverse veil piercing is an equitable remedy that is available in Delaware.  Manichaean Capital v. Excela Technologies, Inc., 2021 Del. Ch....more

Allen Matkins

Slights Sees No Dualism In Corporate Form

Allen Matkins on

Professor Stephen Bainbridge and several others have taken note of Vice Chancellor Slights' recent consideration of "reverse veil piercing" in Manichaean Capital v. Excela Technologies, Inc., 2021 Del. Ch. LEXIS 100 . ...more

Cohen Seglias Pallas Greenhall & Furman PC

First Department of New York Loosens the Standard for “Piercing the Corporate Veil”

One of the general and principal benefits of incorporating a business entity is limited liability; the owners of a corporation are not liable for the corporation’s actions or debts. There are, however, exceptions. One of the...more

Weintraub Tobin

Reverse Veil Piercing: A Judgment Against You Can Become A Judgment Against Your Company

Weintraub Tobin on

It happens all the time. A hard fought lawsuit results in a satisfying judgment. Then it comes time to collect and it turns out the judgment is worth no more than the paper it’s written on. For example, sometimes a party...more

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