Well, looks like the majority voted for the post.

Well, looks like the majority voted for the post. Let’s go.
Part one — theory.
First off, I want to note that lawsuits like this are rare at early stages of a company’s development. There are known cases where there was stuff like this
https://www.businessinsider.com/secret-founder-sells-ferrari-2015-4
and it’s fine, they sorted it out and the guy is still working and doing pretty damn well
https://www.linkedin.com/in/davidbyttow
I’ll be happy if someone even finds a non-crypto case where they sued a founder of a company that raised like 10 million.
Usually this whole fiduciary duty practice is applied very rarely. But they threaten it a lot. Also founders and company directors often have indemnity. That’s when you get sued and the company pays for you. Think about that when you read news like “LegionFarm’s CEO got sued by their own investors, who want him to return money to the company.” It’ll be cringe if the directors have indemnity there. But we don’t know that.
A lawsuit in the US is a whole separate song. I know it not by hearsay, since my company got sued. And it was very expensive. I could’ve done it cheaper if I’d hired cheaper lawyers. But either way it’s hundreds of thousands of USD. For what? To get back hundreds of thousands of USD? Even that you still have to prove. And it won’t be that simple. It’s important to understand: if the CEO is under a lawsuit, you have to replace him. Because nobody from other companies will want to work with someone like that. They even write this into contracts. Like, guarantee there are no lawsuits. Disney once pointed that out to us.