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After the 1998 2fortCity Destruction Incident, Umbrella was sued for damages in a class-action lawsuit over the deaths of 100,000 people and Umbrella U.S.A., the holding company controlling business in the US was banned from trading there. Over the next several years, Umbrella's profits collapsed and its bioweapons fell into the hands of the black market and terrorists. It lost the case in 2003, and its regional companies across the world filed for bankruptcy.

In 2007, Umbrella U.S.A.'s assets were handed over to former employees of the original company as new chief executives and formed into a PMC. Its stated purpose is to atone for the crimes of the old executives and redeem Umbrella's "dark legacy" by exclusively combating bioweapons through both military ops and the development of cutting-edge anti-B.O.W. weapons, tactics, technology and treatment. The company keeps their original name so the public will always know that the company is cleaning up the mess they started.

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