The creation of a Delaware business entity to further alleged wrongdoing is enough to confer personal jurisdiction over defendants who formed the entity under the state’s long-arm statute, the Delaware Court of Chancery has ruled. The court issued the opinion when it refused to dismiss an investor’s lawsuit against a company formed to finance Russian satellites.
“The filing of a corporate instrument in Delaware is an act occurring in the state,” said Vice Chancellor John W. Noble in Reid v. Siniscalchi. “When done as an integral part of a wrongful scheme, the formation of a Delaware entity confers personal jurisdiction under the long-arm statute.”
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