Healthwave Inc. v. New York Society

Dismissal of the fraudulent inducement claim as against Reynolds was not warranted at this stage of the litigation. The record shows that plaintiffs raised the inference that their exercise of reasonable diligence was fruitless under the circumstances by alleging that defendants’ fraudulent conduct was not readily apparent and could not have been discovered through ordinary intelligence based upon a review of the available documents (see e.g. Madison Apparel Group Ltd. v Hachette Filipacchi Presse, S.A., 52 AD3d 385 [1st Dept 2008]). Nor were plaintiffs required, under the circumstances, to…