A lawsuit against TiE New York, alleging governance failures and misconduct, was filed just weeks before the organization’s annual gala, with many defendants served during the event.
A lawsuit alleging governance failures, fiduciary breaches, and misconduct within TiE New York was filed in Queens County Supreme Court more than a month prior to the organization’s annual gala. This legal action has intensified scrutiny over the nonprofit’s governance practices.
The lawsuit, initiated by charter member Kesav Dama both individually and derivatively on behalf of TiE New York, was formally filed on November 11, 2025, and entered into the court system by November 14, 2025. This timing has raised questions about what the leadership of TiE New York knew regarding the internal disputes that have now escalated into a judicial matter.
According to court documents and service records, 10 of the 12 named defendants were served with legal papers during the TiE New York Gala. The defendants include current and former board members and officers, such as then-President Jignesh Patel and Secretary Vaibhav Parikh. TiE New York itself is named as both a nominal and direct defendant in the case.
Typically a celebratory fundraising and networking event, the gala became the backdrop for the formal notification of litigation. The allegations claim that TiE New York’s board failed to act on repeated warnings about misconduct and governance violations.
Legal experts note that while serving legal papers at a public event is unusual, it is not improper if defendants are otherwise difficult to reach or regularly attend scheduled functions together.
The verified complaint outlines multiple causes of action, including breach of fiduciary duty, breach of contract, defamation, tortious interference with business relationships, and intentional infliction of emotional distress. The claims assert that TiE New York leadership failed to investigate or discipline alleged misconduct by its president despite numerous written complaints. Additionally, the plaintiff alleges that an improper demand for evidence was issued as a delaying tactic, and that internal communications containing defamatory statements about a charter member remained uncorrected.
Furthermore, the lawsuit contends that the board continued governance and election activities while litigation was imminent or already underway. The legal action is partly based on New York Not-for-Profit Corporation Law §720, which governs the fiduciary duties of directors and officers.
Alongside the complaint, the plaintiff filed an Order to Show Cause, seeking immediate court intervention. The requested relief includes prohibiting TiE New York from using organizational funds to defend the lawsuit, halting board elections or changes to election rules, preserving and producing board minutes and governing documents, and staying major governance actions pending judicial review.
Justice Karina E. Alomar of the Queens County Supreme Court signed the Order to Show Cause, initially setting a hearing for December 18, 2025. However, court records indicate that Jignesh Patel requested an adjournment of this hearing, which was subsequently delayed to December 22, 2025. The reason cited for the adjournment was the need for additional time to prepare a response to the requested emergency relief following the service of the lawsuit.
This adjournment has raised further questions about whether TiE New York leadership continued its routine operations, including board activity and event planning, after the lawsuit was filed and served.
The litigation marks a significant escalation from what began as an internal governance dispute. Previously, the complainant had submitted formal written complaints and demand letters weeks earlier, urging the immediate suspension of the president and warning of potential legal exposure if the board failed to act.
Newly reviewed records indicate that the complainant, through counsel, complied with requests for evidence within a compressed timeframe. However, the board allegedly declined to take any disciplinary action prior to the lawsuit being filed. By the time defendants were served at the gala, the dispute had already shifted from an internal review to judicial oversight.
Nonprofit governance specialists note that derivative lawsuits, particularly those seeking to halt elections and restrict the use of organizational funds, represent some of the most serious legal challenges a nonprofit board can face. “Once an Order to Show Cause is granted, the court is signaling that the allegations merit immediate attention,” said one nonprofit governance attorney not involved in the case. “It also raises legitimate questions about whether directors are acting independently or protecting incumbents.”
The timing of the service at the gala, combined with the delayed hearing request, may now become part of a broader factual record examined by the court.
As the case unfolds, it places renewed focus on transparency, accountability, and fiduciary responsibility within one of the region’s most prominent entrepreneurial nonprofit organizations. TiE New York and the individual defendants have not publicly commented on the litigation, and requests for comment were not returned by press time.
As this situation develops, it will be crucial to observe how TiE New York addresses the allegations and what implications this legal action may have for its governance practices moving forward, according to The American Bazaar.