Sophisticated Investor’s Fraudulent Inducement Claims Tossed Out by SDNY

As shown by the recent decision in Rostami v. Open Props, Inc., No. 22-CV-3326 (RA) (U.S.D.C. SDNY Jan. 9, 2023), courts apply particular scrutiny to fraud claims attempted to be asserted by what the courts deem are “sophisticated investors,” especially involving investments that carry great recognized risks. In Rostami, the plaintiff-investor could not scale the uphill legal terrane sufficiently to clear the pleadings stage of the case.

For some context and background, see my post Dismissal of Sophisticated Investor’s Attempted Fraud Claim Affirmed by First Department For Lack of Due Diligence.

Read more here.