Posts Categorized: Fraud/Misrepresentation

Posted: February 19, 2017

Dismissal of Fraudulent Misrepresentation Claim Based on Respondeat Superior Theory Affirmed

On February 14, 2017, the First Department issued a decision in VFP Investments I LLC v. Foot Locker, Inc., 2017 NY Slip Op. 01148, affirming the dismissal of a fraudulent misrepresentation claim based on the theory of respondeat superior, explaining: The fraudulent misrepresentation claim based on the theory of respondeat superior fails to state a… Read more »

Posted: February 15, 2017

Fraud Plaintiff Was Reasonable in Relying on Opinion Letter Without Doing Independent Appraisal

On February 10, 2017, the First Department issued a decision in Remediation Capital Funding LLC v. Noto, 2017 NY Slip Op. 01119, holding that a fraud plaintiff was reasonable in relying on an opinion letter without doing an independent appraisal, explaining: As relevant to this appeal, plaintiff seeks to assert misrepresentation claims against Noto. In… Read more »

Posted: February 14, 2017

First Department Affirms Dismissal of Investor Claims Against Rating Agencies as Time-Barred

On February 10, 2017, the First Department issued a decision in Varga v. McGraw Hill Financial, Inc., 2017 NY Slip Op. 01131, affirming the dismissal of RMBS investor claims against rating agencies as time-barred, explaining: Plaintiff’s claims were brought more than six years after the last purchase of securities (CPLR 213[8]) and thus are time-barred…. Read more »

Posted: January 24, 2017

Inquiry Notice of Fraud Existed When Party Received PPM That Contradicted Oral Promises

On January 19, 2017, First Department issued a decision in Hamrick v. Guralnick, 2017 NY Slip Op. 00400, holding that a party was on inquiry notice of an alleged fraud when it received a private placement memorandum containing statements that contradicted the oral representations upon which it was suing, explaining: The fraudulent inducement, negligent misrepresentation,… Read more »

Posted: January 16, 2017

Fraudulent Inducement Claim Fails for Failure to Prove Out-of-Pocket Damages

On January 12, 2017, the First Department issued a decision in Kumiva Group, LLC v. Garda USA Inc., 2017 NY Slip Op. 00235, granting summary judgment dismissing a counterclaim for fraudulent inducement for failure adequately to plead out-of-pocket damages, explaining: Initially, as to Garda’s damages, New York courts for over one hundred years have differentiated… Read more »

Posted: January 10, 2017

Negligent Misrepresentation Claim Against Accountants Fails For Lack of Link to Plaintiff’s Use

On January 5, 2017, the First Department issued a decision in GSP Finance LLC v. KPMG LLP, 2017 NY Slip Op. 00087, affirming the denial of a motion to amend to add of a negligent misrepresentation claim against an accounting firm, explaining: The court . . . providently exercised its discretion in denying plaintiff’s motion… Read more »

Posted: January 2, 2017

If Party Has No Way of Discovering Problem, Specific Disclaimer May Not Bar Claim

On December 20, 2016, Justice Ostrager of the New York County Commercial Division issued a decision in LibertyView Credit Opportunities Fund v. Banc of America Credit Products, Inc., 2016 NY Slip Op. 32507(U), holding that if a party has no way of discovering a material fact relating to a transaction, even a specific disclaimer may… Read more »

Posted: December 19, 2016

AG’s Statutory Fraud Claims Relating to RMBS Sales Timely

On December 13, 2016, the First Department issued a decision in People v. Credit Suisse Sec. (USA) LLC, 2016 NY Slip Op. 08339, holding that the Attorney General’s statutory fraud claims against an RMBS issuer were timely, explaining: General Business Law ยง 353(1) states, “Whenever the attorney general shall believe . . . that any… Read more »

Posted: November 22, 2016

RMBS Fraud Claims Upheld; Plaintiff Was Justified in Relying on Misrepresentations

On November 17, 2016, the First Department issued a decision in Phoenix Light SF Ltd. v. Credit Suisse AG, 2016 NY Slip Op. 07757, reversing the dismissal of RMBS fraud claims, explaining: The allegations that with respect to their purchase of residential mortgaged-back securities plaintiffs relied on misrepresentations and omissions made by defendants in the… Read more »

Posted: November 10, 2016

CDO Fraud Claim Upheld; Disclaimers Did Not Shield Defendant from Liability

On November 3, 2016, the First Department issued a decision in Aozora Bank, Ltd. v. J.P. Morgan Securities LLC, 2016 NY Slip Op. 07260, holding that a plaintiff adequately had plead a claim for fraud in connection with the sale of a collateralized debt obligation notwithstanding the seller’s disclaimers, explaining: The complaint alleges that plaintiff,… Read more »