Can a parent corporation be held liable for the actions of a subsidiary?
MultiRegion, United States of America
The following excerpt is from John Doe v. Unocal Corp., 248 F.3d 915 (9th Cir. 2001):
11, 253 Cal. Rptr. 338 (2d Dist. 1988). Similarly, under California law, "inadequate capitalization of a subsidiary may alone be a basis for holding the parent corporation liable for the acts of the subsidiary." Slottow v. American Cas. Co. of Reading, Pennsylvania, 10 F.3d 1355, 1360 (9th Cir. 1993).
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