Piercing the Corporate Veil: Minimizing Alter Ego Liability for Subsidiaries, Affiliates, and Related Entities

Litigants in business disputes often look beyond the corporation to related entities as potential sources of liability and recovery. Related entities include subsidiaries, affiliates, shareholders, partners, owners or directors.

A plaintiff's success with this approach, known as "piercing the corporate veil," hinges on whether the corporation engaged in wrongful behavior, failed to follow corporate formalities, was inadequately capitalized, or exercised an inappropriate degree of control over the related entity.

Many businesses have formed as LLCs over the past several years as a strategy to protect themselves from alter ego liability. However, LLCs are also facing veil-piercing claims in increasing numbers.

Listen as our authoritative panel explains the circumstances under which a corporate veil can be pierced to find alter ego liability and how the doctrine applies to LLCs. The panel will discuss considerations and best practices for corporations and related entities defending alter ego liability claims.

1. Latest case law trends regarding piercing the corporate veil claims
2. Application of doctrine to LLCs
3. Litigating piercing the corporate veil cases

The panel will review these and other key issues:

• What factors do courts look at in applying the piercing the corporate veil doctrine?
• Are there essential differences between the methods for piercing the veil of a corporation versus an LLC?
• What are some key considerations and best practices for corporations and related entities defending alter ego liability claims?