On March 6, 2020, Justice Schecter of the New York County Commercial Division issued a decision in Next Fabrics, LLC v. Jomar Inc., 2020 NY Slip Op. 30693(U), holding that a fraud claim based on misrepresentations regarding a company’s incorporation status failed for lack of due diligence because the company’ status was publicly-available, explaining: The... Read more »
Blogs
Posts Categorized: Fraud/Misrepresentation
Securities Act Sections 11 and 12 Claims in State Court Not Required to be Plead with Particularity
On February 26, 2020, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of PPDAI Group Sec. Litig. v. XXX, 2020 NY Slip Op. 50285(U), holding that Securities Act Sections 11 and 12 claims brought in New York state court did not have to be plead with particularity under CPLR... Read more »
Merger Clause Defeats Fraudulent Inducement Claim
On February 6, 2020, Justice Schecter of the New York County Commercial Division issued a decision in Gottwald v. Sebert, 2020 NY Slip Op. 30347(U), holding that a merger clause defeated a fraudulent inducement claim, explaining: Kesha’s claim that she was fraudulently induced to enter into the KMI Agreement based on Gottwald’s promise to renegotiate... Read more »
Fraud Claim Dismissed; Plaintiff’s Reliance on Alleged Misrepresentations was Unreasonable Due to Plaintiff’s Failure to Exercise Due Diligence
On December 26, 2019, the First Department issued a decision in Unique Goals Intl., Ltd. v. Finskiy, 2019 NY Slip Op. 09381, affirming the dismissal of a fraud claim because the plaintiff’s reliance on the alleged representations was unreasonable, explaining: We affirm the dismissal of the fraud cause of action on the ground that the... Read more »
Trial Court Properly Declined to Decide Issue of Reasonable Reliance on Summary Judgment
On December 17, 2019, the First Department issued a decision in Norddeutsche Landesbank Girozentrale v. Tilton, 2019 NY Slip Op. 08965, holding that a trial court properly declined to decide the question of a plaintiff’s reasonable reliance on summary judgment, explaining: Summary judgment is precluded by issues of fact as to whether plaintiffs’ losses were... Read more »
Aiding and Abetting Fraud Claim Fails for Lack of Evidence of Substantial Assistance
On October 29, 2019, Justice Masley of the New York County Commercial Division issued a decision in Vincent V Hodes Family Irrevocable Trust v. Advance Entertainment LLC, 2019 NY Slip Op. 33233(U), holding that an aiding and abetting fraud claim failed for lack of evidence of substantial assistance in the alleged fraud, explaining: In order... Read more »
Fraud Claim Cannot be Based on Alleged Intention Not to Perform Contract
On September 25, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Roy Food & Wine LLC v. Meregalli, 2019 NY Slip Op. 32875(U), dismissing a fraud claim based on an alleged misrepresentation of an intention to perform a contract, explaining: To state a cause of action for fraud, a... Read more »
Court Dismisses Federal Securities Fraud Claims
On September 26, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Matter of Densply Sirona, Inc. v. XXX, 2019 NY Slip Op. 32849(U), dismissing federal securities fraud claims, explaining: I find that Plaintiffs’ statements concerning competition and the scope and prospects of Dentsply’s and Sirona’s business are expressions of... Read more »
Alleged Misrepresentation Regarding Future Performance Insufficient to Support Claim for Fraudulent Inducement
On July 8, 2019, Justice Scarpulla of the New York County Commercial Division issued a decision in Gluck v. Rosania, 2019 NY Slip Op. 32085(U), holding that alleged misrepresentations regarding future performance were insufficient to support a claim for fraudulent inducement, explaining: To state a claim for fraudulent inducement, the complaint must allege that the... Read more »
Merger Clause That Lacked Specificity Needed to Bar Fraud Claims
On July 15, 2019, Justice Sherwood of the New York County Commercial Division issued a decision in Doctors Allergy Formula, LLC v. Valeant Pharm. Intl., 2019 NY Slip Op. 32064(U), holding that a merger clause lacked the specificity needed to bar fraud claims, explaining: As a threshold issue, Valeant argues that plaintiffs fraud claims are... Read more »