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.
