In today’s Fraud Notes, we examine Yudkin v. Evergreen Terrace 888 Corp., 2025 NY Slip Op 03223 (2d Dept. May 28, 2025), and Lapin v. Verner, 2025 NY Slip Op 03184 (2d Dept. May 28, 2025). Yudkin involved the statute of limitations for fraud and the continuing wrong doctrine. Lapin involved the failure to plead the elements of a fraud claim.

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 LLC, 2025 N.Y. Slip Op. 03133 (1st Dept. May 22, 2025), discussed below, knowledge of falsity (i.e., scienter) and reliance were the elements at issue.

By Jeffrey M. Haber, a partner at Freiberger Haber LLP On May 31, 2016, the Appellate Division, First Department, issued MP Cool Investments Ltd. v. Forkosh, 2016 NY Slip Op. 05944, a case involving allegations of fraud in connection with the production and sale of a commercial heating and ventilation system by an Israeli-based company. In the decision, the First Department unanimously affirmed the motion court’s dismissal of the plaintiff’s fraud claims because they were not

By Jeffrey M. Haber In Universal Health Services, Inc. v. United States ex rel. Escobar, the U.S. Supreme Court unanimously confirmed that the false certification theory “can be a basis for liability” under “some circumstances.” (See blog post here.) Those circumstances are: (1) the defendant does not merely request payment, but also makes specific representations about the goods or services provided; and (2) the defendant’s failure to disclose noncompliance with material st