Firm Defeats Corporate Form Defense in Federal Court Trial

The Firm’s Taiwanese client sued a U.S. semiconductor manufacturer for damages caused by a defective microprocessor.  The U.S. defendant claimed that it was immune from liability because its foreign subsidiaries, not the U.S. parent, manufactured and sold the product.  Despite the fact that the foreign subsidiaries were separately formed, fully capitalized, and exercised day-to-day control over their foreign operations, the federal district court in Massachusetts ruled that the U.S. parent was liable for the actions of its subsidiaries because it intervened in the subsidiaries’ management when the crises over the product defect arose.  The defendant was ultimately found not liable because of questions about the defect; the case is on appeal to the First Circuit.  The trial team included Zeb Landsman, Richard N. Chassin, Jesse T. Conan, Will Newman, and Heather Hill.