How Executives Can Defend Against Breach of Fiduciary Duty Claims
Executives owe a legal duty of care and loyalty to their companies — but when things go wrong, they are often the first to be blamed. Breach of fiduciary duty claims can lead to personal liability, reputational damage, and career disruption. At LibertyBell Law Group, we specialize in defending executives and board members facing these serious allegations — in and out of court.
What Is a Breach of Fiduciary Duty?
Executives and directors are legally required to act:
- In the best interests of the company
- With care, diligence, and good faith
- Without personal conflicts of interest
When a shareholder, board, or regulator believes these duties were violated, they may file a claim — even if no laws were broken.
Common Executive Actions That Trigger Claims
- Approving risky or failed acquisitions
- Alleged self-dealing or undisclosed interests
- Overcompensation or misuse of corporate funds
- Failure to disclose material risks or changes
- Negligent oversight of compliance or operations
Who Files Breach of Fiduciary Duty Claims?
- Minority shareholders
- Venture capital or private equity firms
- Internal board members or audit committees
- State attorneys general or corporate regulators
How LibertyBell Law Group Builds a Defense
- Demonstrates business judgment rule protections
- Documents good faith decision-making processes
- Challenges conflicts of interest or standing of the claimant
- Negotiates confidential resolutions when appropriate
- Protects D&O insurance access and indemnity rights
Case Example: Tech CEO Cleared of Conflict Allegations
A technology executive was sued by shareholders for allegedly favoring a vendor in which he held stock. LibertyBell Law Group presented corporate approval documentation, board review procedures, and lack of material benefit. The case was dismissed in summary judgment.
Key Legal Protections Executives Must Understand
- Business Judgment Rule – Protects good-faith decisions even if they lead to losses
- Indemnification Agreements – Ensure legal fees are covered
- D&O Insurance – Policies that fund defense and settlement costs
- Board Minutes & Memos – Help prove informed, unbiased decision-making
What Not to Do If You’re Accused
- Do not respond without private legal counsel
- Do not rely solely on company attorneys — they protect the company, not you
- Do not destroy or edit any past documentation
- Do not contact the claimant or make public comments
Free Consultation for Executives Facing Fiduciary Claims
If you’ve been accused of breaching fiduciary duty, contact LibertyBell Law Group for a confidential legal strategy session. We’ll assess the claim, protect your rights, and defend your professional legacy.
Conclusion: Don’t Let One Decision Define Your Career
Fiduciary duty claims are often complex, political, and deeply personal. LibertyBell Law Group stands with executives through board disputes, shareholder lawsuits, and regulatory inquiries — ensuring your position and reputation are protected at every step.