Clawback Actions

Clawback actions refer to the legal steps taken to reclaim money or benefits that were previously distributed, typically due to some form of misconduct, fraud, or error. For example, if a company mistakenly overpays an employee or if an executive is found to have acted unethically, the company may pursue a clawback to recover those funds. Clawback provisions are often included in contracts to protect organizations against such situations. Essentially, it’s a way to ensure fairness and accountability in financial dealings.