Judge scrutinizes ‘outsider’ reverse veil piercing

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted November 4, 2022 10:37 AM

In 1994, the Illinois Supreme Court rejected the “insider” variety of reverse veil piercing. But in a 2017 case involving the “outsider” version of this method for perforating corporate shields, a bankruptcy judge concluded that “the tenor of Illinois law suggests the state is unlikely to accept outside reverse piercing.”Disagreeing with that part of In re Glick, 568 B.R. 634 (Bankr. N.D.Ill. 2017) — while acknowledging that “Glick’s appraisal of Illinois decisions appears astute” — U.S. District Judge John J. Tharp Jr …

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