Nevada Supreme Court Rules Claim of “Gross Negligence” Doesn’t Plead Breach of the Fiduciary Duty of Care

Gross negligence-based allegations did not state an actionable claim against corporate directors or officers, the Nevada Supreme Court held recently. That is because, based on its plain text, Nev. Rev. Stat. § 78.138(7) applies to all claims of individual liability against directors and officers, which precludes the imposition of liability for grossly negligent breaches of fiduciary duties. The Supreme Court said that a claimant must establish that the director or officer had knowledge that the alleged conduct was wrongful in order to show a knowing violation of law or intentional misconduct pursuant to the exculpatory statute.

Read the rest of the article at Attorney at Law Magazine.