Jury Says Ex-GC Breached Fiduciary Duty to Client

The former general counsel of a Houston-based lithium-ion battery company was recently found to have breached his fiduciary duty to the company by a jury that also rejected his bid to recoup what he alleged were orally-agreed-to stock options valued at $3.4 million.

Matthew Smith filed the lawsuit against his former client, Microvast, in February 2018, bringing claims for breach of contract, Texas Securities Act violations, negligent representation and fraudulent inducement, statutory fraud and violations of the Texas Business and Commerce Code. Microvast lodged its breach of fiduciary duty counterclaim in July 2019, according to court records.