Tyco Settlement: Key Points of a NY Breach of Fiduciary Duty Claim
In a recent announcement, Tyco revealed that it has settled its New York breach of fiduciary duty lawsuit with former chief executive officer Dennis Kozlowski. The settlement addresses the amount of damages the company will receive. The former executive was found liable for fraud and breach of fiduciary duty in 2010.
Breach of fiduciary duty claims in New York are decided based upon the unique facts and circumstances of each case. There is no clear black-and-white test to determine whether such a breach occurred. Since Kozlowski was found to have committed a breach of fiduciary duty in New York, the court decided the following:
- The relationship between Kozlowski and Tyco called for greater trust than is usually called for between two strangers doing business together.
- Kozlowski engaged in self-dealing.
- Kozlowski placed his own self-interests above those of the company.
- Kozlowski’s actions arose to more than just misconduct.
The terms of the settlement have not yet been released.
If you believe that you may have a claim for breach of fiduciary duty in New York, it is vital that you contact an experienced business litigation attorney for guidance. The law in this area is complex. To have a successful claim, you must first prove that the individual owed you a fiduciary duty, and then prove that the duty was breached.
To learn more about breach of fiduciary duty claims and other business litigation matters, contact an experienced New York business litigation lawyer for more information. Call our office today at (888) 497-3410 for a free consultation.