On June 12, 2025, the First Department issued a decision in Yang v. Knights Genesis Group, 2025 NY Slip Op. 03641, upholding alter ego liability when the defendant did not maintain separate accounts or observe corporate formalities, explaining:
Summary judgment on the fifth and sixth causes of action for breach of contract based on a theory of alter ego was proper because it is undisputed that defendant companies kept no books and records and observed no corporate formalities. The individual defendants took funds out of the companies, in secret, at their whim. Further, defendants used the corporate forms in a scheme to defraud intervenors-plaintiffs.
(Internal citations omitted).