What does the alter ego doctrine allow a plaintiff's attorney to do?

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The alter ego doctrine is a legal principle that allows a court to disregard the separate legal personality of a corporation or limited liability company. When a plaintiff's attorney invokes this doctrine, they are essentially arguing that the business entity is not truly separate from its owners or shareholders, and therefore, the court should "pierce the corporate veil." This piercing allows the attorney to access the personal assets of those individuals behind the corporation in cases where justice demands it, especially when the business has engaged in wrongful or fraudulent conduct.

This doctrine is typically employed to hold individuals accountable when they use the corporate structure to shield themselves from personal liability, particularly in cases where the business is undercapitalized, or corporate formalities are not observed. By successfully applying the alter ego doctrine, a plaintiff can reach beyond the corporate entity to claim against the personal assets of its owners or operators.

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