In 1999, the city of Seattle was facing a food crisis, which escalated to a series of riots. The rioters mistook a Seretech truck convoy carrying biological/ medical waste for a food/ medical supplies convoy, and tried to raid it. Seretech security personnel used firearms in order to repel the mob, and there were casualties.
In the upcoming legal battle, Seretech claimed that the guards used lethal force in order to prevent a much greater disaster, and that the government was proven incapable of protecting the convoy. The Supreme Court resolved the case in favour of Seretech, and ruled that corporations were allowed to maintain armed forces to protect their assets.
The Seretech case is thought to be the first step towards megacorps’ eventual extraterritoriality.