breach of fiduciary duty

A breach of fiduciary duty occurs when someone who has a legal obligation to act in another person's best interests—like a director, trustee, or agent—fails to do so, either intentionally or through negligence. This can involve dishonest or self-serving actions that benefit themselves at the expense of the person or entity they are supposed to protect or serve. Such breaches can lead to legal consequences, including financial penalties and the requirement to compensate the affected party. Essentially, it's about failing to uphold the trust placed in them to act ethically and loyally.