Blogs

Posts Categorized: Fraud/Misrepresentation

Posted: February 24, 2021

Conclusory Allegations Insufficient Basis for Judiciary Law 487 Claim

On February 10, 2021, the Second Department issued a decision in Cordell Marble Falls, LLC v. Kelly, 2021 NY Slip Op. 00833, holding that conclusory allegations were an insufficient basis for a Judiciary Law 487 claim, explaining: Under Judiciary Law ยง 487(1), an attorney who is guilty of any deceit or collusion, or consents to... Read more »

Posted: February 20, 2021

State AG Can Bring Breach of Contract Claim Against Investment Advisor Under Parens Patriae

On February 4, 2021, Justice Ostrager of the New York County Commercial Division issued a decision in People v. Allen, 2021 NY Slip Op. 30334(U), holding that the state Attorney General can bring a breach of contract claim against an investment advisor, explaining: [D]efendants argue that their alleged conduct at most constitutes a breach of... Read more »

Posted: January 28, 2021

Fraud Claim Fails for Lack of Justifiable Reliance

On January 19, 2021, the First Department issued a decision in United Natural Foods, Inc. v. Goldman Sachs Group, 2021 NY Slip Op. 00276, holding that a fraud claim failed for lack of justifiable reliance, explaining: The fraud claim was properly dismissed because plaintiff did not sufficiently plead justifiable reliance. Plaintiff could have asked follow-up... Read more »

Posted: January 26, 2021

Non-Consumer Can Bring GBL 349 Claim if Public at Large Has Been Harmed

On January 19, 2021, the First Department issued a decision in KS Trade LLC v. International Gemological Inst., Inc., 2021 NY Slip Op. 00259, holding that a non-consumer can bring GBL 349 claims if the public at large has been harmed, explaining: The court properly upheld the claim under GBL 349 against defendants International Gemological... Read more »

Posted: December 25, 2020

Fraud Claims Dismissed for Failure to Perform Due Diligence

On December 15, 2020, the First Department issued a decision in MBF Clearing Corp. v. JPMorgan Chase Bank, N.A., 2020 NY Slip Op. 07504, dismissing fraud-based claims for lack of due diligence, explaining: The fraudulent misrepresentation claims do not allege justifiable reliance on the alleged misrepresentations. Plaintiff, a sophisticated party, could readily have determined for... Read more »

Posted: December 24, 2020

Fraud Claim Time-Barred Because Plaintiff Was on Inquiry Notice More Than Two Years Before Suit Filed

On December 8, 2020, Justice Friedman of the New York County Commercial Division issued a decision in Ambac Assur. Corp. v. Countrywide Home Loans, Inc., 2020 NY Slip Op. 34044(U), holding that a fraud claim was time-barred because the plaintiff was on inquiry notice of its claim more than two years before the suit was... Read more »

Posted: December 14, 2020

Plaintiff Adequately Alleged Aid and Abetting Fraud Where Defendant Allegedly Devised Scheme That Was Used to Deceive Plaintiff

On December 1, 2020, the First Department issued a decision in Bankers Conseco Life Ins. Co. v. KPMG LLP, 2020 NY Slip Op. 07128, holding that a plaintiff had adequately alleged aiding and abetting fraud, explaining: We find that the motion court erred in dismissing plaintiffs’ claim for aiding and abetting fraud. The complaint adequately... Read more »

Posted: December 5, 2020

Questions Regarding Application of Special Facts Doctrine Preclude Summary Judgment

On November 24, 2020, the First Department issued a decision in Sports Tech. Applications, Inc. v. MLB Advanced Media, L.P., 2020 NY Slip Op. 06973, holding that questions of fact regarding the application of the special facts doctrine precluded summary judgment, explaining: Plaintiff also raised issues of fact as to its fraud claims. Although there... Read more »

Posted: November 22, 2020

Fraud Claim Based on Omissions Fails in Light of Disclosure that Not All Material Information Was Being Disclosed for Securities Law Reasons

On November 5, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Silver Point Capital Fund, L.P. v. Riviera Resources, Inc., 2020 NY Slip Op. 51308(U), holding that a fraud claim based on an omission fails because the material information was withheld for securities law reasons, explaining: To state a... Read more »

Posted: November 10, 2020

Conclusory Allegations Doom Fraud Claim

On October 16, 2020, Justice Borrok of the New York County Commercial Division issued a decision in Kirschenbaum v. De Baets, 2020 NY Slip Op. 33406(U), holding that conclusory allegations were an insufficient basis for a fraud claim, explaining: A claim for fraud requires a material misrepresentation of a fact, knowledge of its falsity, an... Read more »