The problem is that courts are restricted by the country they reside in, while corporations can be multinational. After a certain point (say, 1 billion valuatio

The problem is that courts are restricted by the country they reside in, while corporations can be multinational. After a certain point (say, 1 billion valuation), companies can pick and choose what countries to do business in. If a corporate "death penalty" becomes a thing in the USA, large, profitable companies will shift their main business overseas to other, less risky countries. They may still sell their products to US consumers, but it becomes very difficult for the US courts to shut down a company that isn't officially in the US. The best they can do is forbid that company from doing business in the US.