On July 24, 2024, the Second Department issued a decision in Tzu Yen Cheung v. Dolar Shop Rest. Group, LLC, 2024 NY Slip Op. 03905, holding that an LLC does not (necessarily) owe a fiduciary duty to its members, explaining:
With respect to the third cause of action, alleging breach of fiduciary duty, the Supreme Court correctly determined that the plaintiffs failed to plead the existence of a fiduciary relationship with sufficient particularity. While members and managers of an LLC owe a fiduciary duty to the LLC, the reverse is not necessarily true.
(Internal citations omitted).