gotreal ii11 May 2019 11:04
Hope doesn’t stand a cat in Hell’s chance …
Consequences of a Breach of Fiduciary Duty
A breach of fiduciary duty is not a criminal act but can be tied to one. Insider trading is not only a breach of fiduciary duty but can be criminal, depending on the significance of the wrongdoing among other things. This means that on top of damages, the fiduciary would also have to deal with the consequences of a criminal act, and potentially jail time.
In California, the plaintiff can demand compensatory damages, and also punitive damages. Punitive damages are meant to put additional financial pressure on an individual after compensatory damages, sending a message to them and society and a breach of fiduciary duty is not to be tolerated.