The lawsuit is against an Arizona L.L.C business.
Other than the plaintiff wins by default is there any other legal pitfalls to us that will come back to hunt us ?
Generally speaking, it would be extremely unusual for the individual members of an LLC to be "compelled" to appear and provide a defense. The LLC is an entity that is legally separate from you. People form LLCs for the sole purpose of insulating themselves from claims against the entity.
There are, however, some theories under which the plaintiff can attempt to "pierce the corporate veil" of the LLC. Normally these theories require that the members or managers be named as defendants. However, it is also possible that, after the LLC turns out to be "judgment proof," the creditor may sue the members directly on some veil-piercing theory.
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