News & Analysis as of

Liability Piercing the Corporate Veil

Hendershot Cowart P.C.

Shielding Your Assets: How Texas LLC Owners Can Protect Against Veil-Piercing Claims

As a Texas LLC owner, member, or manager, you've made a strategic choice to separate your business and personal finances through a limited liability company structure. This critical legal barrier provides valuable protection,...more

Akin Gump Strauss Hauer & Feld LLP

US Supreme Court: 'Defendant’s Profits' Are Limited to Named Defendants Under the Lanham Act

Under the Lanham Act, a plaintiff who prevails on a trademark infringement claim may be entitled to recover the “defendant’s profits” as damages. The Supreme Court in Dewberry Group, Inc. v. Dewberry Engineers Inc....more

Fox Rothschild LLP

Want to pierce the corporate veil? Plead facts, not just factors.

Fox Rothschild LLP on

Only two months into 2025, and the Business Court has already denied two motions for leave to add claims to pierce the corporate veil. My fellow-Foxer, Brad Risinger reported here on the first opinion from Judge Earp in MD...more

Allen Barron, Inc.

The Importance of Year-End Corporate Governance Work

Allen Barron, Inc. on

What is the importance of year-end corporate governance work? I know. I can see and hear it now: most businesspeople just roll their eyes and ask, “why do I have to go through this hassle?” What is the purpose of a corporate...more

King & Spalding

Delaware Chancery Court Allows Fraudulent Transfer and Successor Liability Claims by Trade Creditor Against Secured Creditor and...

King & Spalding on

On September 5, 2023, the Delaware Chancery Court largely denied a motion dismiss a trade creditor’s successor liability and fraudulent transfer claims against the buyer of a manufacturer’s assets and the manufacturer’s...more

Proskauer - Minding Your Business

Two Sides of a Different Coin: Separating Businesses and Subsidiaries for Liability Protection

A parent corporation is typically not held liable for the acts of a subsidiary. As such, disregarding the corporate form (i.e., by piercing the corporate veil) and holding the parent liable is an extraordinary remedy. That...more

Patton Sullivan Brodehl LLP

Local Government Agencies Can Be “Alter Egos” Too

...Normally, a court will treat a business entity and its liabilities as separate and distinct from its owners. The alter ego doctrine allows the corporate veil to be pierced, and results in holding the owners liable for the...more

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Broadens the Scope of the “Piercing the Corporate Veil” Doctrine

Houston Harbaugh, P.C. on

Earlier this year, Houston Harbaugh wrote on the then-pending Pennsylvania Supreme Court case of Mortimer v. McCool, which presented the question of whether the Court would adopt the “enterprise” or “single entity” theory of...more

Rosenberg Martin Greenberg LLP

Pennsylvania Supreme Court Recognizes Both Enterprise Liability And Reverse-Veil Piercing As Viable Theories for Holding...

In a July 21, 2021 decision, the Supreme Court of Pennsylvania examined whether Pennsylvania recognizes the doctrine variously referred to as the “single-entity,” “enterprise,” or “horizontal liability” theory. Under that...more

Farrell Fritz, P.C.

Commercial Division Finds Allegations of Complete Control Insufficient to Support a Veil-Piercing Theory

Farrell Fritz, P.C. on

A familiar fact pattern: ParentCo is the owner and controlling shareholder of SubCo.  ParentCo completely controls SubCo.  The two companies have the same officers, issue consolidated financial returns, and the profits and...more

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