A fiduciary duty is owed by a person, company or other entity who has undertaken to act for and on behalf of another in a specific matter in circumstances which give rise to a relationship of trust and confidence. When a fiduciary duty exists, the law requires a stricter standard of care than the comparable tortious duty of care owed at common law.
When a company, its officers or directors, affiliates, or professionals conceal or fail to fully disclose all material facts concerning any investment, security or insurance product, or undertake to act in a fiduciary capacity, significant losses may be virtually inevitable. Failure to disclose all important material facts and risks required by law may constitute a breach of fiduciary duty.
In addition, persons and entities who aid and abet a breach of fiduciary duty under federal or state law may also be liable for breach of fiduciary duty.
In any investment context, companies, issuers, underwriters and investment professionals who mislead investors and illegally deprive them of the critical information which they need to make an informed decision concerning whether or not to purchase a product, may be liable for breach of fiduciary duty. When a company or person fails to prominently and clearly convey material facts and language capable of understanding by ordinary reasonable persons, they are violating the law, breaching a fiduciary duty and committing securities fraud.
In order to provide and enhance the security of investors and persons to whom a fiduciary duty is owed, the law requires an enhanced strict duty of care. When a fiduciary duty is breached, a person is entitled to their losses and damages from all responsible parties. Further, persons who breached their fiduciary duties are responsible for making restitution and providing an accounting.
For example, a Trustee, in a Trust context, is a “fiduciary” and is obligated to comply with minimum standards to preserve the Trust res (property) for the benefit of beneficiaries. Similarly, investment professionals and attorneys owe a fiduciary duty to their clients. A fiduciary duty includes an obligation of good faith, trust, loyalty and due care. A fiduciary owes a duty to use their utmost ability to act in a fair, just, honest and equitable manner.
Legal Help for Victims of Securities Fraud
Gilman Law LLP, Naples, Florida Securities Office is a leading securities fraud law firm and is here to assist and help you recover the most compensation for damages in your breach of fiduciary duty or fraud claim. For a FREE evaluation of your breach of fiduciary duty case, please fill out our online form, or if you need to speak to an attorney right away, CALL TOLL FREE (1-888-252-0048) today.
For over 40 years, we have represented investors in securities litigation to recover their investment losses due to breach of fiduciary duty and securities fraud in counties throughout Florida, including Collier County, Lee County, Charlotte County, Hillsborough County, Miami Dade County, Broward County, Orange County, Duval County, and Palm Beach County.