On September 30, 2025, Justice Borrok of the New York County Commercial Division issued a decision in Murphy v. PHG Funding LLC, 2025 NY Slip Op. 33671(U), dismissing a fraud claim for lack of allegation of reliance, explaining:
Fraud requires (1) a material false representation, (2) knowledge of its falsity, (3) an intent to
induce reliance, (4) reasonable reliance and (5) damages. According to the third-party plaintiffs, Messrs. Murphy and Nigro fraudulently concealed Mr. Nigro’s receipt of receipt of $400,000 from the Tiger Capital Asset proceeds by issuing K-1s which only disclosed the $1,218.208. Critically, the third-party plaintiffs do not allege that they reasonably relied on these statements in either doing or in forbearing from doing anything, and based on the deal documents that the parties actually executed, this simply does not state an actionable claim for fraud.
(Internal quotations and citations omitted).