On June 29, 2023, the First Department issued a decision in EPAC Tech. Ltd. v. Interforum S.A., 2023 NY Slip Op. 03543, holding that a lack of due diligence bars a fraudulent inducement claim, explaining:
The fraudulent inducement counterclaim was properly dismissed for failure to sufficiently allege facts from which it may be reasonably inferred that plaintiff knew its representations regarding its projected costs were inaccurate when made. The Editis Defendants’ argument that these facts are peculiarly within the knowledge of plaintiff is unavailing in view of the absence of any allegations that they undertook any due diligence to verify the cost projections (or took other steps to protect themselves) — thereby negating any claim of justifiable reliance.
(Internal citations omitted).