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Our team of attorneys handle business litigation needs across Tennessee, including in Memphis, Jackson, Nashville and beyond. We handle commercial litigation cases for businesses both large and small on a variety of topics.
Tennessee Business Lawsuit for Breach of Fiduciary Duty
A Tennessee breach of fiduciary duty lawsuit was filed against Provectus Biopharmaceuticals last month alleging that investors suffered losses due to fake representations made by the company. Filed in a Nashville district court, business lawsuits, such as this case, seek to represent all those who purchased the shares of the development-stage biopharmaceutical company from December 2013 to May 2014. It accuses the firm of violating the federal securities laws and causing loss to the shareholders by presenting misleading and false information. Many investors bought securities following a surge in the company shares artificially caused through paid stock promoters, the Tennessee breach of fiduciary duty lawsuit claimed.
Tennessee Breach of Business Fiduciary Duty: The Scope
A person managing a business owes a fiduciary duty of standard and responsible care while carrying on the daily management activity. He is trusted by investors, partners, and employees, who consider him functioning on their behalf, and this makes him perform legal obligations as a fiduciary. He is expected to exercise his duty of care, fidelity, and disclosure in good faith and for the benefit of all beneficiaries. Negligence and intentional conduct by him leading to losses to the stakeholders is met with legal action in the form of business breach of fiduciary duty lawsuit.
Fiduciary duties originate from both written and unwritten arrangements. The legal sanctity of the fiduciary responsibility is derived from written terms, established conventions, implied trust, and set standards of functioning. Tennessee business tort law covers all fiduciary responsibilities created through legal documents, such as partnership agreements, as well as those emanating from factual circumstances.
Tennessee Breach of Business Fiduciary Duty: Examples
A prudent Tennessee business lawyer can make a strong fiduciary duty breach claim on your behalf for violations related to both corporate and partnership duties, which include
- abuse of position, such as disloyalty, excessive reimbursements, expenditures, or sale of assets
- ethical violations, such as disobedience, establishing perpetuate control, unfair dealing with minority stakeholders, misuse of funds, or insider trading
- incompetence and imprudent actions leading to losses or usurpation of opportunities
- negligent action causing improper use of position and assets
- self-dealing or conflict of interest
- fraud, misappropriation, deception, misinformation, and false disclosures
Tennessee Breach of Business Fiduciary Duty: Four Principles
To initiate a business lawsuit for breach of fiduciary duty, the plaintiff must present evidence suggesting
- existence of fiduciary obligation,
- duty of loyalty, obedience, care and disclosure toward the plaintiff
- violation of the duty, and
- there was injury caused by the breach
Tennessee Breach of Business Fiduciary Duty Lawsuit: Remedies
There is no special legal remedy available for a plaintiff claiming business breach of fiduciary duty in Tennessee. The aggrieved party may request damages to cover losses incurred along with punitive damages. He is also free to demand restitution and equitable compensation depending on the circumstances. The first forces the fiduciary to surrender the gross profit earned notwithstanding losses, if any. Equitable compensation, on the other hand, means the net monetary profit to be divided and damages paid to the plaintiff.
A Tennessee business breach of fiduciary duty lawsuit can also petition the court seeking rescission or return to the original position. This is mostly sought in case of fiduciary violations related to partnership agreements. Consult expert Tennessee business lawyers skilled in breach of fiduciary duty lawsuits to hold your fiduciaries accountable and protect your rights and interests.
Select The Right Tennessee Breach of Contract Lawyer
A competent and professional Tennessee breach of contract attorney is essential to press for your compensation claim. His or her proficiency ensures you navigate the legal field related to the contract without any hassle and put the breaching party on the defensive. Your attorney also plays vital role in ensuring the out-of-court settlement in your favor.
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