The Firm won a motion to dismiss in New York Supreme Court, Kings County, obtaining the dismissal of all of plaintiff’s claims against its client, a life insurance company. Plaintiff sued the Firm’s client for fraud, alleging that it failed to detect that plaintiff’s relative submitted a forged document removing plaintiff as a beneficiary of certain annuities. The Firm argued that, under New York law, failing to detect a fraud committed by another person does not amount to active participation in the fraud and that plaintiff failed adequately to allege any warning signs that should have put the Firm’s client on notice of the fraud alleged. The Court adopted the Firm’s arguments and dismissed in plaintiff’s claims against the Firm’s client in full.
