Blair v. Infineon Technologies, AG
United States District Court for the District of Delaware
720 F. Supp. 2d 462 (2010)
Infineon Technologies, AG (defendant) created subsidiary Qimonda AG and its own subsidiaries (the Qimonda Subsidiaries), owning most of Qimonda's stock, financing it heavily, placing its own officers on Qimonda's board, and sharing HR, legal, and accounting services under the label "Infineon Group." When Qimonda's business failed, Infineon forced the subsidiaries to funnel most of their revenue to Qimonda AG, which then closed facilities and laid off employees, including Blair (plaintiff), after inducing some to waive severance for relocation promises Qimonda never honored. Blair sued Infineon and Qimonda AG for the layoffs, and Infineon moved to dismiss, arguing it was merely a parent corporation.
Whether a plaintiff seeking to pierce the corporate veil under the alter-ego doctrine must show that the corporations functioned as a single entity and engaged in some element of fraud or injustice in using the corporate form.