A claim for fraud requires “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” In First Trinity Life Ins. Co. v. Advance Funding...more
6/3/2025
/ Appeals ,
Appellate Courts ,
Business Litigation ,
Fraud ,
Insurance Litigation ,
Jurisdiction ,
Lottery ,
Misrepresentation ,
New York ,
Scienter ,
Summary Judgment
In Libman v. Hershey Co., 2025 N.Y. Slip Op. 31769(U), (Sup. Ct., N.Y. County May 5, 2025) (here), the motion court was asked to consider whether a front-of-the-package label on the Twizzlers candy wrapper violated General...more
The allure of guaranteed profits from sophisticated crypto asset and foreign exchange trading served as the underlying predicate for the claims asserted by the Securities and Exchange Commission (“SEC”) against Ramil Palafox...more
In Crawford v. Integrated Asset Mgt. Servs., LLC, 2025 N.Y. Slip Op. 01352 (2d Dept. Mar. 12, 2025) (here), the Appellate Division, Second Department reversed the denial of the defendants’ motion to dismiss the plaintiffs’...more
Previously, this Blog examined the doctrine of res judicata (here, here, here and here). Under the doctrine, a party may not litigate a claim where a judgment on the merits exists from a prior action between the same parties...more
Now and then a lawyer fails to meet a deadline or otherwise acts untimely. Several “saving” provisions in the Civil Practice Law and Rules (“CPLR”) are available to assist a lawyer when deadlines are missed. These include:...more
Pre-IPO investing involves buying a stake in a company before the company makes its initial public offering of securities. Many stock promoters invite potential investors to invest in a pre-IPO offering by providing an...more
2/10/2025
/ Broker-Dealer ,
Enforcement Actions ,
Financial Crimes ,
Financial Industry Regulatory Authority (FINRA) ,
Fraud ,
Initial Public Offering (IPO) ,
Investment Funds ,
Private Equity ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Regulation
We have written frequently about the substance and scope of general releases. In New York, “a valid release constitutes a complete bar to an action on a claim which is the subject of the release.” If “the language of a...more
In Katsorhis v. 718 W. Beech St, LLC, 2025 N.Y. Slip Op. 00211 (1st Dept. Jan. 15, 2025) (here), the Appellate Division, Second Department considered a fraud claim that the lower court sustained on the grounds that defendant...more
1/27/2025
/ Breach of Contract ,
Construction Contracts ,
Consumer Protection Laws ,
Damages ,
Evidence ,
Fraud ,
Misleading Statements ,
Motion to Dismiss ,
Property Owners ,
Real Estate Development ,
Real Estate Transactions
In New York, litigants often grapple with the appropriate limitation period to apply to breach of fiduciary claims. There is no single statute of limitations that the courts and the parties can look to. “Rather, the choice of...more
Under New York law, written agreements are construed in accordance with the parties’ intent. “The best evidence of what parties to a written agreement intend is what they say in their writing.” As such, “a written agreement...more
1/14/2025
/ Appeals ,
Assignments ,
Breach of Contract ,
Contract Interpretation ,
Contract Modification ,
Contract Terms ,
Evidence ,
Litigation Strategies ,
New York ,
Statutory Interpretation ,
Written Agreements
The justifiable reliance element has been described as a “fundamental precept” and a “venerable rule”. The requirement is one of the five elements of a fraud cause of action: (1) a misrepresentation or a material omission of...more
1/6/2025
/ Appeals ,
Cause of Action Accrual ,
Damages ,
Due Diligence ,
Fraud ,
Joint Tenancy with Right of Survivorship ,
Justifiable Reliance ,
Marital Assets ,
Misrepresentation ,
Omissions ,
Ownership Interest ,
Scienter ,
Summary Judgment
Two weeks ago, this Blog wrote about an enforcement action involving an investment adviser’s former co-chief investment officer who had been charged with running a more than $600 million cherry-picking scheme (here). Today,...more
12/23/2024
/ Cease and Desist Orders ,
Cherry Picking ,
Enforcement Actions ,
ETFs ,
False Statements ,
Investment Adviser ,
Investment Advisers Act of 1940 ,
Misleading Statements ,
Permanent Injunctions ,
Policies and Procedures ,
Securities ,
Securities Act of 1933 ,
Securities and Exchange Commission (SEC) ,
Settlement
In Valkyrie AI LLC v. PriceWaterhouseCoopers LLP, 2024 N.Y. Slip Op. 06141 (1st Dept. Dec. 5, 2024) (here), the Appellate Division, First Department affirmed an order involving claims for unfair competition, tortious...more
12/16/2024
/ Bad Faith ,
Confidential Information ,
Contract Terms ,
Established Business Relationship ,
Fraudulent Inducement ,
Independent Contractors ,
Misappropriation ,
Non-Compete Agreements ,
Non-Disclosure Agreement ,
Non-Solicitation Agreements ,
Third-Party ,
Tortious Interference ,
Trade Secrets ,
Unfair Competition
In Farage v. Associated Ins. Mgt. Corp., 2024 N.Y. Slip Op. 05875 (Nov. 26, 2024) (here), the New York Court of Appeals examined the enforceability of an insurance contract’s two-year suit limitation period. In a 4-3...more
12/9/2024
/ Apartments ,
Appeals ,
Bad Faith ,
Claims Adjusters ,
Compliance ,
Contract Terms ,
Denial of Insurance Coverage ,
Enforcement ,
Fire Damage ,
Insurance Industry ,
Motion to Dismiss ,
Multi-Family Housing ,
New York ,
Property Damage ,
Restoration Terms
The Bank Secrecy Act (“BSA”) and implementing regulations promulgated by the U.S. Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”) require that broker-dealers file a suspicious activity report (SAR”) with...more
12/3/2024
/ Anti-Money Laundering ,
Bank Secrecy Act ,
Broker-Dealer ,
Cease and Desist ,
Censures ,
Civil Monetary Penalty ,
Compliance ,
Enforcement ,
Filing Requirements ,
FinCEN ,
Popular ,
Securities and Exchange Commission (SEC) ,
Securities Exchange Act of 1934 ,
Settlement ,
Suspicious Activity Reports (SARs)
In Singh v. T-Mobile, 2024 N.Y. Slip Op. 05554 (2d Dept. Nov. 13, 2024) (here), the Appellate Division, Second Department affirmed the dismissal of an action for, among other things, breach of contract, breach of the covenant...more
11/18/2024
/ Breach of Contract ,
Cause of Action Accrual ,
Compensation ,
Conspiracies ,
Covenant of Good Faith and Fair Dealing ,
Dismissals ,
Fraud ,
Management Agreements ,
Sprint ,
T-Mobile ,
Unjust Enrichment
Statutes of limitations limit the time within which a defendant can be held liable for any type of alleged wrongdoing. Plaintiffs who do not pursue their rights within the limitations period will find the courthouse doors...more
10/28/2024
/ Breach of Duty ,
Damages ,
Declaratory Relief ,
Enforcement Actions ,
Fiduciary Duty ,
Fraud ,
Liability ,
Partnerships ,
Repudiation ,
Statute of Limitations ,
Tax Returns ,
Time-Barred Claims ,
Willful Misconduct
In Seitz v. Marcum LLP, 2024 N.Y. Slip Op. 51141(U) (Sup. Ct., N.Y. County Aug. 30, 2024) (here), Justice Robert R. Reed of the New York County Commercial Division addressed the doctrine of in pari delicto, which “bars a...more
9/17/2024
/ Accountant Malpractice ,
Affirmative Defenses ,
Audits ,
Breach of Contract ,
Breach of Duty ,
Cause of Action Accrual ,
Commercial Bankruptcy ,
DEA ,
Healthcare Fraud ,
In Pari Delicto ,
Insurance Fraud ,
Kickbacks ,
Negligence ,
Popular ,
Professional Liability ,
Purchase Agreement ,
Unjust Enrichment
In Villaver v. Paglinawan, 2024 N.Y. Slip Op. 04159 (2d Dept. Aug. 7, 2024) (here), the Appellate Division, Second Department reversed the dismissal of a legal malpractice, breach of fiduciary duty, and intentional infliction...more
“A third-party beneficiary … is a person or entity that receives benefits from a contract between two other parties, even though they are not a party to the contract.” The concept of a third-party beneficiary stems from the...more
It is well-settled that leave to amend a pleading is to be freely granted. Leave may be denied, however, if the proposed amendment is palpably insufficient or patently devoid of merit, or if it would cause undue prejudice to...more
The Currency and Foreign Transactions Reporting Act, also known as the “BSA,” enacted in 1970, established requirements for record-keeping and reporting by banks and other financial institutions. The BSA is designed to, among...more
7/16/2024
/ Anti-Money Laundering ,
Banks ,
BSA/AML ,
Compliance ,
Cryptocurrency ,
Enforcement ,
Financial Crimes ,
Financial Institutions ,
FinCEN ,
Investors ,
Misleading Statements ,
Money Laundering Control Act (MLCA) of 1986 ,
Patriot Act ,
Recordkeeping Requirements ,
Securities and Exchange Commission (SEC) ,
Suspicious Activity Reports (SARs) ,
U.S. Treasury
Arbitration is an alternative form of dispute resolution where the parties voluntarily agree that a neutral person will resolve any legal disputes between them, instead of a judge or jury in a court of law. It is encouraged...more
To state a cause of action for fraud, a plaintiff must allege “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” The...more
6/3/2024
/ Appeals ,
Breach of Contract ,
Breach of Duty ,
CPLR ,
Damages ,
Fiduciary Duty ,
Fraud ,
Gross Negligence ,
Justifiable Reliance ,
Limited Partnerships ,
Misrepresentation ,
New York ,
Scienter