Piercing The Corporate Veil

There are times when the corporation you sued no longer has any assets. When that happens, it may be time to pierce the corporate veil of protection and go after the assets of the people behind the business. Individual officers of a business entity can be held liable for damages if the company had insufficient capitalization, failed to observe corporate formalities, was insolvent at the time of the transaction, or otherwise acted as an alter ego for the individuals involved. Sometimes whether it’s worth it to sue a company can be determined by the ability to pierce the corporate veil to recover damages.