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LLFW Wins $39.5 Million Judgment Piercing the Corporate Veil at Trial in SDNY.

After a three-day bench trial, LLFW prevailed on behalf of its client, a U.S. clearing firm, in obtaining a $39.5 million judgment, against the owner of a Bermuda investment company.

In its decision in favor of the clearing firm, the Court pierced the corporate veil based on its finding that the defendant had misused the corporate form by dominating and controlling the investment company that he owned to perpetrate a wrong against the plaintiff clearing firm. The Court found that the Bermuda investment company's purchases of stock in a publicly-traded company through the plaintiff "was the last wrongful step" in a strategy that the defendant devised and carried out with and through his agent to prop up their investment in the publicly-traded company.

The Court held that the defendant's wrongful conduct amply justified piercing the corporate veil and holding the defendant personally liable for the losses that plaintiff sustained when the investment company failed to pay for the stock purchases.

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