Isenberg & Hewitt, PC | A Business And Personal Injury Law Firm | Since 1989
Isenberg & Hewitt, PC | A Business And Personal Injury Law Firm | Since 1989
en español
To talk with a lawyer call (770) 901-2666
Isenberg & Hewitt, PC | A Business And Personal Injury Law Firm | Since 1989
en español
To talk with a lawyer call (770) 901-2666
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Distinguished Georgia Trial Attorneys

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Diversion of Corporate Opportunity

Diversion of corporate opportunity occurs when a corporate officer or director usurps a business opportunity that rightfully belongs to the corporation for personal gain. This breach of fiduciary duty can have serious consequences, including financial losses, damage to shareholder trust and legal liabilities. At Isenberg & Hewitt, we specialize in helping companies protect their interests and seek legal remedies for diversion of corporate opportunity.

Understanding Diversion of Corporate Opportunity

Diversion of corporate opportunity involves situations where corporate officers or directors exploit their positions to acquire business opportunities that should rightfully belong to the corporation. This can include:

  • Self-Dealing: When executives or directors use their positions to profit personally from business opportunities that should be pursued by the corporation.
  • Competitive Ventures: Pursuing business ventures or opportunities that directly compete with the corporation, without disclosure or consent from the board of directors.
  • Undisclosed Investments: Investing in businesses or projects that present opportunities for the corporation, without disclosing such opportunities to the company or its shareholders.

Legal Implications

Diversion of corporate opportunity raises serious legal and ethical concerns, including:

  • Breach of Fiduciary Duty: Corporate officers and directors have fiduciary duties to act in the best interests of the corporation and its shareholders. Diverting corporate opportunities for personal gain breaches these duties.
  • Conflict of Interest: Engaging in self-dealing or pursuing competitive ventures without disclosure creates conflicts of interest that undermine corporate governance and integrity.
  • Legal Liability: Corporate officers and directors may face legal liability for damages incurred by the corporation as a result of diversion of corporate opportunity, including monetary damages and injunctive relief.

Legal Remedies

Victims of diversion of corporate opportunity may seek various legal remedies, including:

  • Recovery of Damages: Compensation for financial losses, lost profits and other damages incurred by the corporation as a result of the diversion.
  • Injunctive Relief: Court orders prohibiting the individual from continuing to divert corporate opportunities and requiring corrective actions to rectify the harm caused.
  • Rescission of Transactions: Invalidating transactions entered into as a result of the diversion and restoring the corporation to its rightful position.

Our Approach

At Isenberg & Hewitt, our attorneys have extensive experience in litigating diversion of corporate opportunity claims. We work closely with our clients to understand their unique circumstances and objectives, developing customized strategies to protect their rights and interests. Whether through negotiation, mediation or aggressive litigation, we are committed to achieving the best possible outcomes for our clients.

Contact Us

If your company has been harmed by diversion of corporate opportunity, contact Isenberg & Hewitt today. Call 770-202-9481 or email us to schedule your consultation with one of our experienced attorneys to discuss your case and explore your legal options.