Undisclosed $6M gift could trigger century-old loyalty doctrine at Forbes
Forbes fired Randall Lane after discovering he received an undisclosed roughly $6 million payment from SHOOK Research founder RJ Shook. While lawyers say Lane probably didn’t break the law, the case hinges on New York’s century-old faithless servant doctrine, which could allow Forbes to claw back or disgorge compensation if an employee’s disloyalty is proven. The gift was described as personal, but questions about disclosure, the source of the funds, and potential tax implications complicate the matter; Forbes is unlikely to sue, but the incident underscores how loyalty duties can affect executive pay and relationships with business partners.
