Product liability litigation is a cost of doing business in the U.S. and the risk extends to everyone in the distribution chain for a product—manufacturers, CMOs, distributors, wholesalers, and retailers. Non-U.S. parent companies are not immune from this cost and are often named as defendants, despite the presence of a U.S. entity responsible for the manufacture, sale, and distribution of the product in the U.S. market. With many recent, highly-publicized, multimillion-dollar jury verdicts, companies are understandably concerned about limiting product liability exposure in the U.S. As a result, one of the first battles in a product liability case is often whether the court has personal jurisdiction over the entities sued.
In-House Defense Quarterly
Personal Jurisdiction Considerations for Non-U.S. Parent Companies Facing Product Liability Litigation