• Non-Compete Agreements
• Tortious Interference
• Breach of Fiduciary Duty
• Breach of Contract

Legal News For New York Business Owners

Convio, Inc. Under Fire for Possible Breach of Fiduciary Duty

The company Convio, Inc is under investigation for a possible breach of fiduciary duty to its shareholders after agreeing to a deal that would lead to its takeover by Blackbaud, Inc. A cash tender offer would lead to payment of $16 per share.

A business relationship is considered to be bound by fiduciary duty when there is an elevated level of trust and vulnerability. The relationship must go beyond the normal levels, such as when one party relies on another to consider its best interest with money or the fate of a company. Some relationships include lawyers, business partners, stockbrokers, real estate brokers, and financial advisors.

The sale of Convio, Inc. to Blackbaud, Inc. is under investigation because the Board of Directors of Convio might not have had the best interest of its shareholders in mind. The investigation will look into whether or not the Board properly shopped around to an adequate field of competitors to acquire the highest price possible for the shares.

If it is shown that the Board failed to get maximum value for its shareholders, they may be found in breach of fiduciary duty, as the shareholders place a high amount of trust in the company to look out for their best interests. The stock value of Convio, Inc. has increased over the past year and analysts believe that it would increase even more, increasing the expected value in the sale to Blackbaud, Inc.

Questions about the investigation or regarding breach of fiduciary duty can be directed to a New York breach of fiduciary duty lawyer at the Law Offices of Jonathan M. Cooper. 

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