News for hackers. Stuff that matters.

A comment on Nikola admits prototype was rolling downhill in promotional video. Parent comment

Re:Nikola admits prototype was rolling downhill in promotion... by samfisher83 on Monday September 14, 2020 @07:31PM (#24476330)
Until they get sued. Many of the people who made money of Madoff had to return the money they gained.
[ Parent | on HN ]
Re:Nikola admits prototype was rolling downhill in promotion... by hatsunearu on Monday September 14, 2020 @07:56PM (#24476490)
You're saying an investor (GM) can be held liable for what the limited liability corporation (Nikolai) did?
[ Parent | on HN ]
Re:Nikola admits prototype was rolling downhill in promotion... by ric2b on Wednesday September 16, 2020 @05:02PM (#24497859)
Not necessarily held liable, but they'd probably have to return the money if it was earned from illegal activity.
[ Parent | on HN ]
Re:Nikola admits prototype was rolling downhill in promotion... by hobby-coder-guy on Monday September 14, 2020 @08:16PM (#24476602)
In some cases, yes.
[ Parent | on HN ]
Re:Nikola admits prototype was rolling downhill in promotion... by nordsieck on Monday September 14, 2020 @08:18PM (#24476610)
>> You're saying an investor (GM) can be held liable for what the limited liability corporation (Nikolai) did?

> In some cases, yes.

Now I'm curious. Can you give an example?

This[1] is a pretty good overview to piercing the corporate veil. I suppose it's technically possible for a company to be liable for what a company they invest in does, but there would have to be some pretty weird circumstances (for example, if the two companies had substantially co-mingled finances and leadership).

I don't see any of it applying to the GM/Nikola deal.

___

1. https://www.nolo.com/legal-encyclopedia/personal-liability-p...

[ Parent | on HN ]