Individuals accountable to a board of directors (or simple investors) hold a legal, and arguably moral, responsibility to the shareholders who depend on them to run a business. Those types of responsibilities are consumed in what is called fiduciary duties. When a businessperson breaches those duties and shareholders are harmed as a result, investors have the right to recover financial damages.
When A Breach of Fiduciary Duty Occurs: Steps to Take
As the plaintiff, you can recover damages for a breach of fiduciary duty if you show facts to prove the breach. There are a couple of steps to take initially.
- You must prove that a fiduciary relationship existed between you and the defendant. If you are a shareholder in a company where the defendant is on the board of directors, then this element of the case has likely been met.
- You must prove that the defendant breached his (or her) fiduciary duty. If, for example, the defendant acted on his (or her) own behalf and not in the best interest of the company, then the defendant may have breached his or her duty of loyalty or care. If this element of the case has been satisfied, then you must show that the defendant’s breach of his or her duty caused you damage.
Not All Breach of Fiduciary Duty is the Same
It is important to note that plaintiffs in breach of fiduciary duty lawsuits need not be shareholders and that defendants need not be on the Board of Directors. For example, employees may have a successful breach of fiduciary duty claim against employers who fraudulently or negligently handled employee retirement accounts.
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If you feel you are a victim of breach of fiduciary duty, contact us today.
We do not charge an attorney fee for personally consulting with you about your injury case. If retained, we will seek compensation for your loss of income or dividends. Do not accept a settlement offer without consulting with an attorney who can fully and accurately valuate your damages and losses.
For more information or to speak directly with an Oldham & Smith attorney,please call 1 (800) 887-5895 or contact us by email to discuss your case with a premises liability lawyer. We offer a trusted reputation and solid record of results.