{"id":5275,"date":"2026-08-14T14:40:12","date_gmt":"2026-08-14T14:40:12","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=5275"},"modified":"2026-08-14T14:40:12","modified_gmt":"2026-08-14T14:40:12","slug":"randall-lane-probably-didnt-break-the-law-by-accepting-6-million-while-working-at-forbes-but-he-may-still-pay-a-price-under-a-140-year-old-doctrine","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=5275","title":{"rendered":"Randall Lane probably didn\u2019t break the law by accepting $6 million while working at Forbes, but he may still pay a price under a 140-year-old doctrine"},"content":{"rendered":"
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A Forbes spokesperson told Fortune<\/em>: \u201cWhen this undisclosed conflict of interest was brought to our attention, we examined the situation closely and took the appropriate action immediately. We will not comment further per company policy regarding the confidentiality of personnel information and other considerations. We have a strong editorial leadership team in place, including Kerry Lauerman, Executive Editor, Forbes, who is overseeing editorial operations in the interim. Forbes remains focused on delivering trusted journalism and world-class storytelling across our platforms.\u201d<\/p>\n

Read more Trump\u2019s \u2018Board of Peace\u2019 with Jared Kushner, Tony Blair heads to Middle East to salvage Gaza peace deal<\/a><\/p>\n

But the more interesting question, legally, isn\u2019t whether Forbes was justified in firing Lane. It\u2019s whether Lane broke any criminal law, and the answer, according to one employment attorney, is probably not. What he likely violated is a New York common-law doctrine dating back more than a century that requires employees to remain loyal to their employers.<\/p>\n

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Richard Friedman, an employment attorney who negotiates contracts and separation agreements for executives, said Forbes was within its rights. \u201cI believe he was properly terminated, based on what I\u2019ve read,\u201d Friedman said.<\/p>\n

Friedman said Forbes\u2019 employee handbook\u2014which, according to the Times, requires staff to seek permission before engaging in outside business activities and bars personal gain from company relationships\u2014likely functions as a binding contract. \u201cEmployee handbooks have been upheld as contracts because the consideration is the ongoing employment,\u201d he said.<\/p>\n

But Friedman said Lane\u2019s obligations to Forbes didn\u2019t depend on any handbook at all. \u201cEmployees owe fiduciary duties to their employers,\u201d he said, \u201cwholly apart from written policies contained in employee handbooks or otherwise.\u201d<\/p>\n

Friedman pointed to New York\u2019s \u201cFaithless Servant\u201d doctrine, a common-law theory on the books for over 140 years that allows employers to recover compensation from employees found to have acted disloyally. Courts, he said, have found disloyalty \u201ccan cover a wide range of conduct, including fraud, gross negligence, embezzlement, misappropriating trade secrets, and other behavior viewed as detrimental to the company, as well as making material misstatements or omissions with respect to the company\u2019s financial posture.\u201d<\/p>\n

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How far back that recovery can reach has varied from case to case. \u201cUnder the faithless servant doctrine, employers will sometimes take the position that the entire compensation paid to the employee from the inception of employment is subject to clawback,\u201d Friedman said of the doctrine that was invoked as early as in two court cases dating from 1885 and 1886. \u201cIn other cases, employers have only sought disgorgement of the compensation paid during the period of disloyalty.\u201d<\/p>\n

Friedman said the danger of a payment such as the one made to Lane is that it could impact, or create the appearance of impacting, the decisions an executive makes vis-\u00e0-vis the person or entity that made the payment. \u201cIf I\u2019m expecting to receive or have received a substantial payment such as $6 million from a business partner of my employer, I may choose to increase the contractual relationship with that company,\u201d he said. \u201cI may choose to award it a lucrative contract without soliciting bids, I may choose to pay them a higher fee than the market requires, or I may choose to be more generous with that company when allocating revenue between the two companies.\u201d<\/p>\n

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\u201cYou can only have one master. If I\u2019m an employee, I owe my duty to my employer.\u201d Lane, he said, \u201cowed his duties exclusively to Forbes, as opposed to Forbes and also his apparently good friend Shook.\u201d<\/p>\n

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\u201cIt would appear that Forbes has a written policy which requires Lane to seek permission to accept the offered payment,\u201d Friedman said. He sketched out what that disclosure could have sounded like: \u201cListen, I\u2019ve had this long-standing friendship for 13 years with Shook. He\u2019s offered to make a substantial gift to me. I think it\u2019s very generous of him and unnecessary, but I certainly would appreciate it, and I don\u2019t see any impropriety. But I wanted to let you know in advance and hopefully confirm that I can accept the gift.\u201d<\/p>\n

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Of course, Forbes could have declined the request. If Lane had complied and Forbes said no, he wouldn\u2019t have gotten the $6 million, but he still would have his job.<\/p>\n

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The detail that most complicates Lane\u2019s account, in Friedman\u2019s view, is how the payment came to light in the first place. \u201cThe PE firm apparently contacted Forbes and said we just found a $6 million payment to one of your senior people on the accounting records of the company we just bought,\u201d Friedman said.<\/p>\n

That points to where the money actually came from. \u201cIf the payment was on the accounting records of the company, it was presumably deducted as a business expense and therefore not a personal gift by Mr. Shook,\u201d Friedman said. He also noted that a payment of that size carries its own tax consequences regardless of how it\u2019s characterized. \u201cThere are tax ramifications to gifts,\u201d he said. \u201cI can\u2019t give you $6 million without incurring a tax liability.\u201d<\/p>\n

Despite the range of legal theories available, Friedman doubts Forbes will actually bring a case. \u201cForbes presumably terminated Mr. Lane for cause,\u201d he said. \u201cMy guess is that it will not sue him to avoid ongoing publicity of an embarrassing situation.\u201d<\/p>\n

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Would Lane have any legal room to push back on the firing himself? That would depend on whether he had an employment contract with deferred compensation at stake. \u201cIf Mr. Lane believes he is entitled to deferred compensation, he might sue Forbes and allege his conduct doesn\u2019t constitute cause within the definition in some agreement he signed,\u201d Friedman said, \u201cbut I think that would be a very challenging argument to prevail on based on what has been reported.\u201d<\/p>\n

If Forbes did sue, Friedman said the claim would likely combine four theories: \u201cthat Lane violated the company\u2019s written policy or policies, that he breached his contract with Forbes by violating the employee handbook, that he breached his fiduciary duties as an employee or possibly as an officer of the company, and that he violated the faithless servant doctrine, all by entering into an undisclosed personal financial transaction with a business partner of his employer.\u201d<\/p>\n

The harder problem would be settling on damages. Discovery, Friedman said, might reveal that \u201cthe payment didn\u2019t just arrive at his doorstep, so to speak, without any prior discussion.\u201d If it turned out Lane and Shook had discussed the payment years before it was made, Forbes could seek to amend its complaint to claw back Lane\u2019s compensation from whenever those discussions began.<\/p>\n

Lane\u2019s own writing depicts a similar story, when, in a 2021 Forbes piece about Donald Trump\u2019s decades-long fixation with his net worth ranking, Lane recalled an episode from early in his career: \u201cWhen I was a $27,000-a-year cub reporter on The Forbes 400, the largest strip-mall developer in Texas, the late Jerry J. Moore, offered me a six-figure p.r. job \u2018with lots of golf\u2019 if I would only nudge his number closer to billionaire status.\u201d\u00a0<\/p>\n

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Lane\u2019s history with this dynamic goes back further still. Before joining Forbes, he ran Doubledown Media, the company behind Trader Monthly and Dealmaker, and produced The Players Club, a short-lived financial magazine for professional athletes backed by Lenny Dykstra, the former Mets and Phillies outfielder. Lane later wrote about Dykstra in his 2010 book, \u201cThe Zeroes,\u201d reporting that Dykstra had secretly taken $250,000 in stock from a company in exchange for touting it to his TheStreet.com subscribers, and had hidden the arrangement under his brother-in-law\u2019s name to obscure the conflict from the public. The New York Daily News<\/em>chronicled this at the time.<\/p>\n

Reached for comment, Dykstra said he hadn\u2019t spoken to Lane in years. \u201cIt was a long time ago, like 25 years or so,\u201d Dykstra said, declining to comment on Lane\u2019s situation at Forbes.<\/p>\n

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A New York legal doctrine requiring employee loyalty could pose more risk to the fired Forbes editor than any criminal exposure.<\/p>\n","protected":false},"author":1,"featured_media":5274,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[151],"tags":[],"class_list":["post-5275","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-media"],"yoast_head":"\nRandall Lane probably didn\u2019t break the law by accepting $6 million while working at Forbes, but he may still pay a price under a 140-year-old doctrine - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=5275\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Randall Lane probably didn\u2019t break the law by accepting $6 million while working at Forbes, but he may still pay a price under a 140-year-old doctrine - 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