Are unfair deals with insiders or related companies considered fraud?

These deals may represent a type of improper conduct usually referred to as breach of fiduciary duty. Such wrongdoing includes waste of your company`s assets, unfair business transactions with insiders or related entities, agreeing to a sale of your company at a price that doesn`t reflect its true value, or any other act that improperly robs a company or its shareholders of value. In such cases, a suit can be brought on behalf of the company and/or its shareholders to recover damages, or to ensure that shareholders are treated fairly.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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