Fraud Claim against Your Business? Is it Really a Breach of Contract Claim?

If your business is facing allegations of fraud, you probably have several defenses available, including:

Inability to prove a material misrepresentation . There are several elements that must be established to prove a valid fraud claim. It is common for a fraud allegation to fail because the plaintiff cannot prove a material misrepresentation of presently existing or past fact. For example, if a manufacturer promises to ship a product at a future date and fails to keep the promise, the statement is not about a presently existing or past fact. Most promissory statements are the basis for a breach of contract allegation, not a fraud claim.

Puffery and opinions . A fraud allegation cannot be supported by a statement of puffery or opinion. There is no actual misrepresentation because an opinion is not a statement of fact.

Conclusory statements . The law requires the plaintiff to meet a heightened pleading requirement when alleging fraud. This means that the plaintiff must set forth the fraud allegations with particularity. Many complaints filed by plaintiffs merely set forth conclusions without stating the particular facts that support the recitations for a fraud claim, which is insufficient for a valid claim of fraud.

If your company is facing a lawsuit that alleges a claim of fraud, let us help. The Swenson Law Firm is located in Orangevale and we proudly serve businesses of all sizes from all over the State of California. Contact us today to learn more about how we can assist you with matters such as defending lawsuits, business formation, contract negotiations, hiring employees, and protecting your intellectual property. With our years of complex business trial and litigation experience, we are an effective, efficient and affordable choice in representing you at the bargaining table and in the courtroom.

The post Fraud Claim against Your Business? Is it Really a Breach of Contract Claim? appeared first on The Swenson Law Firm - Providing Guidance and Protection to California Businesses and Employers.