The Umbrella Corporation was a pharmaceutical enterprise which was founded following the collapse of the earlier Umbrella Corporation. It has been nicknamed "Blue Umbrella" to disassociate it from the predecessor corporation.
After the 1998 Raccoon City 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 terrorists. It lost the case in 2003, and its regional companies across the world filed for bankruptcy. Umbrella U.S.A.'s assets were handed over to a reconstituted "Umbrella" by the US government on the condition that it assist them in tackling the new threat of bioweaponry.