Denver Complex Litigation Blog

Business owners in Colorado who want to see their companies flourish often deal in securities. Having to report to and keep shareholders happy is not always an easy thing to do. If one is not careful, claims of breach of fiduciary duty may come one's way. When this happens, securities litigation may be unavoidable.

Fiduciary duty means that one must act in another party's best interests. Failing to do so is called a breach of fiduciary duty. As far as securities go, if business owners or corporate boards make decisions that end up hurting their shareholders, their shareholders may take legal action to recoup their losses. In order to do this, however, the following elements must exist in the case:

• Element number one: Duty exists
• Element number two: That duty was breached in some way
• Element number three: Damages were incurred

When you hear the words “antitrust law,” what comes to mind? Do the words conjure images of Mark Zuckerberg sitting before congress, forced to defend Facebook’s actions? Do they sound like hurdles to clear on the way to a successful merger or acquisition? Do they give you a warm feeling because they mean the law favors a free market? Or do they remind you that you really want to watch the Avalanche and Nuggets games?

If you’re in the last camp, you’re not alone. The nation’s antitrust laws recently got dragged front and center into the world of Colorado sports and business. And in a case that garnered national attention, Denver-based Altitude Sports and Entertainment sued Comcast for antitrust violations. In short, Altitude claims Comcast is using unfair practices to keep Altitude out of homes and off TVs. No Avalanche games. No Nuggets.

Self-driving cars. Facial recognition software. Telemedicine. Delivery drones. Artificial intelligence. Ridesharing. Short-term room rentals. Everywhere you look, people are using new technologies to disrupt old markets. And the companies pushing these new models have often had a stormy relationship with the law.

There are plenty of household stories to this effect. We’ve heard of Uber’s struggles with employment law. Airbnb’s struggles with local taxes. Facebook’s policy changes in the wake of the 2016 election and its ongoing antitrust concerns. And while these are giant companies with millions or billions of dollars at stake in these legal challenges, the core questions are the same for smaller businesses, too. How much should innovators and entrepreneurs concern themselves with regulation?

Many Colorado residents hold jobs where they are responsible for handling other people's money or property. If they keep that money or property for themselves rather than using it for its intended purpose, they may be charged with embezzlement. This is a serious charge that can have severe consequences if one is ultimately convicted.

In order for prosecuting attorneys to achieve a conviction, they have to prove that certain elements exist in an embezzlement case. The first element is that a fiduciary relationship existed between the accused and the alleged victim. If that exists, then the following common elements may also have to be present:

• There must be evidence that the accused, through that relationship, took property.
• There must be evidence that the accused took ownership of the property or gave it to someone else.
• There must be proof that the defendant intended to take the property from the rightful owner.