News & Analysis as of

Parent Corporation Piercing the Corporate Veil

Morris James LLP

Delaware Court of Chancery Refuses After Trial to Impose Liability on Parent of Wholly Owned Subsidiary

Morris James LLP on

NuVasive, Inc. v. Miles, C.A. No. 2017-0720-SG (Del. Ch. Jan. 31, 2025) - In an earlier decision, the Court denied defendant Alphatec Holdings, Inc.’s (“Holdings”) motion to dismiss, finding that issues of fact remained...more

Parker Poe Adams & Bernstein LLP

US Parent Not Liable for Employment Claims Brought Against Foreign Subsidiary

The applicability of U.S. labor and employment laws to U.S. citizens working outside of the country can be complicated. In general, if the citizen works for a U.S. company outside of the country, they enjoy the same legal...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

Buchalter

Are You My Employer?

Buchalter on

It is becoming increasingly common that when an employee files suit against their current or former employer, they file not only against the company they worked for day-to-day but also against any related company. Akin to the...more

Williams Mullen

Delaware Joins Virginia in Allowing Reverse Veil-Piercing Under Certain Circumstances

Williams Mullen on

Recently, the Delaware Court of Chancery (the “Court”), expanded the potential liability of a parent company’s subsidiaries by allowing reverse veil-piercing in Manichaean Cap., LLC. v. Exela Techs., Inc., C.A. No....more

Hogan Lovells

Manichaean Capital v. Exela Tech: DE courts rule on “reverse veil piercing” claims - Q2 2021 Quarterly Corporate / M&A Decisions...

Hogan Lovells on

In Manichaean Capital, LLC v. Exela Tech., Inc. (C.A. No. 2020-0601-JRS (Del. Ch. May 25, 2021)), the Court of Chancery ruled as a matter of first impression in Delaware that plaintiffs could pursue “reverse veil piercing”...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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