Yes, you're wrong about lots of things in this pos

Yes, you're wrong about lots of things in this post.

Piercing the corporate veil is not going to be as difficult as you think, given that when NSF took over, they appointed two of their top executives to hold concurrent high management positions at Amarex.
Their CEO also communicated with Nader that the situation did indeed look problematic, and that he would investigate. He was aware of the situation, yet did not reply after that to Nader about it.

NSF had control of the company, through appointing their people to run Amarex. Their CEO was aware of problems yet did not rectify them.

Any excuses that they may have had about innocently stumbling into a situation are blown up by the fact that the deficiencies (to put it mildly, and kindly) were well known -- yet they took no steps to cure said deficiencies, when they had time to do so.

I doubt very much that a world-class law firm like Sidley Austin, which is cognizant of many more facts and privy to all the communications between CYDY and Amarex, would be pursuing this case if it was not something they think they could win.