Ruby Freeman and Shaye Moss seek to pierce the corporate veil of Rudy Giuliani’s coffee company following a defamation victory.
At a Glance
- A jury awarded $148 million in damages to Georgia election workers Moss and Freeman against Rudy Giuliani.
- Giuliani’s coffee profits, linked to Giuliani Communications, are under scrutiny for asset targeting.
- The case exemplifies “piercing the corporate veil,” questioning asset protection under corporate law.
- Guiliani has vowed to appeal, dismissing the damages as “absurd.”
Defamation Verdict Against Giuliani
A jury in Georgia awarded Ruby Freeman and Shaye Moss $148 million in damages against Rudy Giuliani, following a defamation lawsuit based on false election fraud allegations made during the 2020 election. Giuliani’s statements led to significant harassment and threats against the election workers, greatly affecting their personal lives.
The court ruled Giuliani liable, determining the damages based on punitive and other harm inflicted on Freeman and Moss. Giuliani has dismissed the decision, labeling the outcome as “absurd” and vowing to appeal. Despite these claims, the judgment points to Giuliani’s financial troubles amid ongoing lawsuits and investigations.
Piercing the Corporate Veil
Freeman and Moss are targeting profits from Giuliani’s coffee company, tied to Giuliani Communications, LLC, contending the LLC acts as Giuliani’s personal financial extension. The court regards Giuliani Communications as his “alter ego,” thus allowing the plaintiffs to pursue its assets.
Corporate law typically shields entities like LLCs from unrelated litigation. However, piercing the corporate veil is considered when personal and business finances are indistinct, as suggested in this case. Expert Eric Chaffee confirms the court’s perspective on the LLC as a personal asset shield.
Ongoing Legal Challenges
Giuliani’s complications include prior liabilities, legal fees, and criminal charges in Georgia over 2020 election interference efforts. Attempts to evade asset freezes through legal maneuvering were unsuccessful, as the New York judge rejected claims to exempt Parkside’s holding of coffee profits.
As Rudy Giuliani’s battles mount, the focus remains on the implications for corporate law and limitations on asset protection when personal interests permeate business operations. Freeman and Moss aim to illustrate corporate responsibility in safeguarding individuals from defamation and consequential harm.
