One of the investors of METLife, Inc. has sued the members of the board of directors and some of the higher-ranking officers for what he considers breaches of fiduciary duty. The plaintiff claims that certain members of the company’s executors have failed to live up to their administrative duties to the company’s shareholders.
The breach of fiduciary duty claim states that the board of directors did not properly maintain supervision of the company’s internal workings, and as a result the company filed information that could be considered misleading.
The plaintiff also points out that METLife, Inc. itself admitted to using practices that would lead to financial penalties if the Securities and Exchange Commission went looking in the right places. Putting the company at risk of undue financial burden would put the decision makers in violation of fiduciary duty to the shareholders.
METLife also improperly used the U.S. Social Security Administration’s Death Master File to gather information that would help save the company money, and ignore information that would cost it money.
Filing misleading information, putting the company at risk of financial penalties, and immorally and unfairly using a national database for personal gain only could damage the company, and therefore put the board of directors and officers in a breach of fiduciary duty to its investors.
If you have questions about a company that may be in breach of fiduciary duty to shareholders in New York, contact The Law Offices of Jonathan M. Cooper for a free consultation. The New York business attorney also offers the free book 3 Reasons That Your Employment Agreement May Not Be Worth The Paper It's Printed On.