Officers and directors of companies often are targets of lawsuits by those who claim they have been harmed by corporate malfeasance. This is often the case because officers and directors are responsible for running a company properly: both legally and in the company’s best interests.
Sometimes a company will have a bad quarter, bad year or even fail, but this does not mean that those in charge made bad decisions. External influences can play a role, such as a market downturn, shortage of supplies or changing rules and regulations. Sometimes, however, the improper conduct of officers or directors causes financial harm to a company.
What does Corporate Malfeasance mean?
Corporate malfeasance is a term used to describe wrongdoing that may be committed by the officers or directors of a company. Some examples of corporate malfeasance can include, but are not limited to:
- Defrauding investors by issuing false financial reports
- Corporate espionage
- Securities Fraud
- Negligence
- Embezzlement
In a nutshell, any activity that is illegal or committed to the company’s detriment may be an example of corporate malfeasance, which would render the company’s officers and directors liable.
Have You Suffered Losses Due to Corporate Malfeasance?
If you are a shareholder in a private or public company and believe that the officers or directors of the company have acted illegally or in bad faith, you may have certain legal rights that require your immediate attention. Contact an experienced Los Angeles stock attorney today for a consultation to discuss your rights and options.