Disloyalty Claims vs Executives

2018.09.21  Executives Behaving Badly - Remedies for Wronged Employers.  The fact pattern is not atypical: a senior executive allegedly misled his employer into paying him excessive bonuses.  In the face of executive wrongdoing, employers typically pursue a variety of state law tort claims in order to recover their damages.   For a sense of the possible claims, and their basic elements, see Northstar v. Alberto (E.D. VA, 7/31/2018).  In that decision, a federal court in the Eastern District of Virginia held that --

  • "Ultimately, plaintiffs’ breach of fiduciary duty, conversion, defamation, and unjust enrichment claims survive. Plaintiffs’ conspiracy, fraud, and tortious interference with business expectancy claims must be dismissed."