Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: July 20, 2020

Court Upholds Fraud Claim Based on Damages Resulting From Selling at a Fraudulently-Induced Deflated Price

On June 29, 2020, Justice Masley of the New York County Commercial Division issued a decision in Community Assn. of the E. Harlem Triangle, Inc. v. Butts, 2020 NY Slip Op. 32163(U), upholding a fraud claim based on damages resulting from selling at a fraudulently-induced deflated price, explaining: In New York, as in multiple other... Read more »

Posted: June 8, 2020

Fraudulent Inducement Claim Survives as Not Duplicative of Breach of Contract Claim

On May 4, 2020, Justice Cohen of the New York County Commercial Division issued a decision in SRS Capital Funds, Inc. v. Bujan, 2020 NY Slip Op. 31449(U), holding that a fraudulent inducement claim survived dismissal because it was not duplicative of the plaintiffs’ breach of contract claim, explaining: Plaintiffs’ fraudulent inducement claim is not... Read more »

Posted: June 4, 2020

Puffery Not Actionable Under Securities Laws

On May 15, 2020, Justice Ostrager of the New York County Commercial Division issued a decision in Matter of Sundial Growers Inc. Sec. Litig., 2020 NY Slip Op. 50579(U), holding that puffery is not actionable under the federal securities laws, explaining: Expressions of puffery and corporate optimism are not actionable under the securities laws. This... Read more »

Posted: May 28, 2020

Providing Legal Advice to Person Accused of Fraud Insufficient to Support Aiding and Abetting Claim

On April 23, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Space Race, LLC v. Alabama Space Science Exhibit Commn., 2020 NY Slip Op. 31299(U), holding that providing legal advice to a person accused of fraud is an insufficient basis for a claim of aiding and abetting fraud, explaining:... Read more »

Posted: May 26, 2020

Continuing Wrong Doctrine Does Not Save Plaintiff’s Claims From Being Time-Barred

On April 28, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Marjay N10, LLC v. Yashar, 2020 NY Slip Op. 31279(U), holding that the continuing wrong doctrine did not save the plaintiffs’ claims from being time-barred, explaining: Under CPLR § 3211(a)(5), Defendants bear the initial burden of establishing, prima... Read more »

Posted: May 25, 2020

Court Analyzes Negligence and Fraud Claims Against Appraiser

On May 5, 2020, Justice Cohen of the New York County Commercial Division issued a decision in Shavolian v. Donegan, 2020 NY Slip Op. 31181(U), analyzing negligence and fraud claims against an appraiser: To establish a cause of action sounding in negligence, Shavolian must establish the existence of a duty on Defendants’ part to Shavolian,... Read more »

Posted: May 18, 2020

Fraud Plaintiff’s Due Diligence Sufficient When it Considered the Facts Reasonably Available to It

On February 19, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Itria Ventures LLC v. Provident Bank, 2020 NY Slip Op. 30494(U), holding that a plaintiff bringing a fraud claim had alleged sufficient due diligence when it considered the facts reasonably available to it, explaining: The Itria Parties argue... Read more »