Novel Approach to Access Sole LLC Member’s Personal Assets
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Novel Approach to Access Sole LLC Member’s Personal Assets

A TV programming service provider sued an access provider for an alleged fraudulent scheme involving unauthorized transmission of television programming. After the access provider was held liable, the service provider moved to “reverse pierce” the “corporate veil” of three of the access provider’s limited liability companies (LLCs). Considering this issue for the first time, the court held that outsider reverse piercing of the LLC’s veil was available when the LLC was the alter ego of its sole member. And, considering another issue of first impression, the Fourth Circuit held Delaware’s LLC charging statute did not prevent the court from reverse piercing veil of the LLC that served only as the alter ego of its sole member. The court went on to hold the remainder of the requirements for this equitable remedy were present. 

Sky Cable LLC v DIRECTV Inc