Real Life Claim Examples A private company considered acquiring a smaller competitor. After months of due diligence the firm decides not to go through with the purchase for a number of valid reasons. Several months later the company officers are sued under the theory that the due diligence process was simply a ruse to gain competitive advantage. The cost ultimately exceeded $900,000. Two weeks after being hired away from a competitor, a new employee was fired by the Company President who decided he made a bad hiring decision. The former employee filed suit alleging that during the hiring process the President misrepresented the position. The jury took less than 3 hours to find the President personally liable. The CEO of a privately held company gave stock bonuses to two senior managers that over time gave each manager 10% equity in the company. Upon the death of the CEO, his spouse inherited the company and the relationship with the two managers deteriorated and they left the firm. The firm then lost major clients and the two managers filed suits related to the devaluation of their stock. The trustees of a trade association decided to expand their activities into areas that were not explicitly envisioned by the founders. Their state’s attorney general brought an action against them alleging misuse of funds and property for operating outside their charter, even though no third party had raised a complaint. A local chamber of commerce published a quarterly newsletter. The newsletter included a tourism section, promoting places of interest, attractions, restaurants, etc. A new restaurant had recently approached the chamber with a request to advertise in the upcoming issue. The chamber agreed and accepted a minimal advertising fee from the restaurant. Upon release of the next issue, it was discovered that the Executive Director never expedited the restaurant request and actually kept the money. The restaurant in turn sued the chamber for breach of fiduciary duty, breach of contract and interference with economic interests. A donor made a large contribution to a foundation to aid students in need of tuition. The board instead voted to expand their headquarters and commit a portion of the donation to the building fund. The donor filed suit, alleging misappropriation of funds. Damages included return of the full contribution plus interest. As some of the money was already spent, the foundation was financially unable to return the entire donation.