On July 22, 2025, Justice Livote of the Queens County Commercial Division issued a decision in Cabrita v. Vitabyte, Inc., 2025 NY Slip Op. 51214(U), holding that a business can be held liable for defaming a former employee, explaining:
Simon’s fifth cause of action alleges slander. Generally, a plaintiff alleging slander must plead and prove that he or she has sustained special damages, i.e., the loss of something having economic or pecuniary value. A plaintiff need not prove special damages, however, if he or she can establish that the alleged defamatory statement constituted slander per se. Among the four recognized types of slander per se are statements which ‘tend to injure another in his or her trade, business or profession. Here, the complaint does not allege that Simon sustained special damages. Instead, Simon claims that the allegedly defamatory remarks that Karabelas made to current and prospective Cube It customers that Simon sabotaged the POS systems installed by Vitabyte and was stealing Vitabyte clients harmed his professional reputation, resulting in lost business opportunities. As alleged, Karabelas’ alleged defamatory statements would tend to injure Simon in his trade, business or profession, and thus would constitute slander per se. Contrary to Vitabyte’s contention, a corporation may be held liable for slander. Thus, that branch of Vitabyte’s cross-motion to dismiss the fifth cause of action alleging slander is denied.
(Internal quotations and citations omitted).