First Department Gives Lenient Pass to Aiding and Abetting Fraud Claims

I have reviewed the myriad of ways in which parties can be held liable for the fraudulent conduct committed by others. See Imposing Responsibility for the Fraud of Others—Let me Count the Ways. Among the most prominent legal theories is the cause of action known as “aiding and abetting fraud.”

Aiding and abetting claims can be particularly challenging to allege and prove. I explained some of the more demanding principles, for example, in Fraud and Aiding and Abetting Claims Against Lender Fail. The New York, Appellate Division, First Department can, however, be particularly accommodating when it comes to alleging such claims. See First Department Very Lenient in Sustaining Allegations Against Bank for Aiding and Abetting Fraud of its Customer.

The First Department continued that path in the recent decision of Vision Biobanc Holdings LLC v Taller, 2026 NY Slip Op 03901(1^st Dep’t June 18, 2026).

Read the full blog post here.