On December 23, 2023, Justice Cohen of the New York County Commercial Division issued a decision in O’Connor v. Society Pass Inc., 2023 NY Slip Op. 34535(U), holding that a fraudulent inducement claim must be based on statements of fact, not opinions, explaining:
The elements of fraudulent inducement are: 1) a false representation of material fact, 2) known by the party charged to be untrue, 3) made with the intention of inducing reliance and forbearance from further inquiry, 4) that is justifiably relied upon, and 5) results in damages. The failure to sufficiently allege each element warrants the denial of a motion to amend.
Accepting Society Pass’ allegations as true, Society Pass has not stated a prima facie defense of fraudulent inducement. Fraudulent inducement must be stated with particularity pursuant to CPLR 3016. In a fraudulent inducement claim, the alleged misrepresentation should be one of then present fact, which would be extraneous to the contract and involve a duty separate from or in addition to that imposed by the contract and not merely a misrepresented intent to perform. General allegations that defendant entered into a contract while lacking the intent to perform it are insufficient to support the claim.
(Internal citations omitted).