When defendants aren’t who they say they are – Getting to the bottom of alter ego cases

Description

Abstract: Plaintiffs with valid claims against insolvent or cash-poor defendants may feel as though they’ll never collect their judgments. But they might be able to argue that a defendant represents the alter ego of a parent company. Alter ego litigation generally is sought to gain access to the financial resources of a defendant’s subsidiaries — or even individual shareholders. But as this article explains, to be successful, plaintiffs need to show that the company’s shareholders abused the corporate structure.