Successor Liability, ALter Ego, and Piercing the corporate veil

When a predecessor entity sells or transfers its principal assets to a successor, under some conditions the successor may inherit the liabilities of the predecessor and any associated damages.  The question for economic analysis is whether the predecessor’s tangible and intangible assets (e.g., goodwill, customer lists, and management’s knowledge and skills) were transferred to the buyer with adequate and appropriate compensation.


When one entity acquires ownership of a corporation that turns out to have unexpected liabilities, plaintiffs may seek to prove the corporation is the alter ego of the owning entity, and pierce the corporate veil to force the owning entity to assume the corporation’s liabilities.


The economic question in this case is whether the owning entity dominated or controlled the corporation so that it had no independent existence.


Engaged to provide testimony and consulting in successor liability and alter ego cases in several industries, including the following.