Network for Good wins $4.79 million suit

A California judge has ordered United Way of the Bay Area to pay $4.79 million to Network for Good to reimburse the online-donation company for lost contributions.

The suit stems from the failure of PipeVine, a company spun off from the United Way affiliate to process donations.

PipeVine closed its doors in 2003 without paying $17.7 million owed to charities, some of which were clients of claimant Network for Good.

In ordering payment to Network for Good, the judge ruled the United Way was the “alter ego” of PipeVine and therefore liable on all claims, which included fraud, breach of fiduciary duty and negligent misrepresentation.

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