In order to state the cause of action, the plaintiff must plead a material representation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance, and damages. The claim can be based on a material omission of fact for the purpose of inducing the plaintiff to rely on it, the plaintiffs justifiable reliance on the omission, and injury. The element of justifiable reliance is lacking where a sophisticated plaintiff enters into an arms-length transaction, and, with the exercise of ordinary intelligence, could have protected itself through due diligence.
Rapaport v. Strategic Fin. Solutions, LLC, NY Slip Op 00511 (1st Dep't January 28, 2021)
