THS courts piercing the corporate veil when plaintiffs allege a company has violated environmental regulations
Most companies operate under limited liability, meaning owners' personal assets will be protected if the company faces legal or financial challenges. This is sometimes referred to as a "corporate veil." "Piercing the corporate veil" is a legal practice where a court will hold a company's shareholders, directors, and/or officers liable for that company's debts or wrongful actions. Right now, many jurisdictions do not pierce the corporate veil except in cases where corporate actors have engaged in fraudulent behavior. Although a plaintiff usually sues and wins against a company before requesting veil-piercing, plaintiffs may also request veil-piercing without suing a whole company.