On July 2, 2026, the First Department issued a decision in Avail Holding LLC v. ICM Funding LLC, 2026 NY Slip Op. 04256, holding that there is no separate cause of action for piercing the corporate veil, explaining:
Moreover, Supreme Court properly dismissed the fourth counterclaim, which purports to interpose a cause of action to pierce the corporate veil. The counterclaim, which alleges facts to support an alter ego recovery against plaintiff’s principal, fails because veil-piercing is not a standalone cause of action. We note that in affirming dismissal of the fourth counterclaim, we do not determine that the alter ego allegations were conclusory or otherwise insufficient to support an alter ego finding with respect to the reinstated counterclaim for breach of contract; rather, we merely affirm Supreme Court’s finding that there is no independent cause of action for piercing the corporate veil.
(Internal citations omitted).