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Civil Litigation

Fraudulent Misrepresentation

The money is usually gone before the misrepresentation becomes obvious. What is left is a set of statements someone made before you signed, and the question of whether you can show they were false.

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01 GUIDE

Fraudulent Misrepresentation: what usually happens

Where these claims come from

Business sales where the numbers presented during diligence did not match what the company was actually doing. Investments described as secured or low risk when they were neither, and real estate where a known problem went unmentioned. Franchise and dealership pitches built on projections nobody could support, equipment and vehicles sold with a concealed history, and partnership disputes where one side overstated what the company held or what was already committed. What separates a disappointing deal from a fraudulent misrepresentation claim is usually the gap between what you were told and what was true at the time, and whether that gap can be shown from something other than memory.

The paper trail

Pre signing material matters more than the contract in these matters, so start there: emails, marketing decks, pitch materials, financial statements you were handed, texts, and notes you made after meetings. Identify who else was in the room, because a second person who heard the same statement changes the picture considerably. Then the contract itself, since disclaimer and integration clauses are common in exactly these transactions and they complicate a claim without necessarily ending it. Finally, document what you did in reliance: the wire, the loan you took out, the job you left, the other offer you turned down.

How these are handled

A fraud claim is frequently brought alongside a breach of contract claim, since the same transaction supports both and they ask for different things. Courts generally expect fraud claims to be pleaded with more particularity than ordinary claims, which is why the specifics of who said what, when, and to whom need to be assembled early rather than developed later. What you can ask for, including whether a transaction can be unwound rather than compensated, depends on the state and on the facts. How long you have to bring the claim turns on where you are and, in many places, on when the misstatement was discovered rather than when it was made.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

05 HOW WE WORK

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06 OFFICES

Where we meet clients

Consultations are available in person or remotely.

New York

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(855) 529-7557

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(424) 561-7557

Attorney Advertising. This page is general information about fraudulent misrepresentation and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.