Accounting Expert’s Alter Ego Opinion Excluded
Posted on October 10, 2025 by Expert Witness Profiler
Plaintiffs NetJets Aviation, Inc., NetJets Sales, Inc., and NetJets Services, Inc. brought this action for declaratory judgment. NetJets sought a declaration that Defendants Stephen G. Perlman and the Stephen G. Perlman Revocable Trust are the alter egos of RS Air, LLC, a bankrupt entity. NetJets obtained a judgment of over $1.7 million against RS Air in bankruptcy court. If NetJets is successful in this action, then Perlman and the Trust will be liable for the judgment against RS Air.
Defendants submitted the report of Terry Lloyd to resolving the alter ego claim. NetJets filed a motion to strike Lloyd’s report.
Accounting Expert Witness
Terry Lloyd is a managing director of Finance Scholars Group (“FSG”), a consultancy. He was previously a partner/managing director with BDO Seidman and Huron Consulting Group. He has been a certified public accountant (“CPA”) since 1983 and a Chartered Financial Analyst (“CFA”) since 1993. He has published and spoken to legal, accounting, and financial groups, including law schools.
He has been qualified as an expert in federal, state, tax, bankruptcy courts and arbitration venues.
Discussion by the Court
Lloyd concluded his report with the opinion that “the weight of the evidence” showed that Perlman was not the alter ego of RS Air.
NetJets argued that Lloyd’s report is inadmissible because he purports to render an opinion on the ultimate issue in this case — whether Perlman was the alter ego of RS Air.
The Court agreed that Lloyd’s legal conclusions are inadmissible, and therefore will exclude them from consideration.
However, the Court denied the motion to strike the entire report because Lloyd’s report analyzed discrete factual issues, such as RS Air’s adequacy of capitalization and its observance of corporate formalities, which are relevant to the factors which must be considered in resolving an alter ego claim.
Held
The Court granted in part and denied in part NetJets’ motion to strike the testimony of Terry Lloyd.
Key Takeaway:
In addition to general legal conclusions which are considered inadmissible, Lloyd’s expert report focuses on factual, company-specific matters such as adequacy of capitalization and observance of corporate formalities and is therefore directly relevant to evaluating an “alter ego” claim.
Case Details:
| Case Caption: | Netjets Aviation, Inc. Et Al V. Perlman Et Al |
| Docket Number: | 2:22cv2417 |
| Court Name: | United States District Court, Ohio Southern |
| Order Date: | October 09, 2025 |
