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Fraud and Misrepresentation Claims

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By

ACL

The short answer

Common-law fraud requires a false statement of material fact, knowledge of its falsity, intent to induce reliance, justifiable reliance, and damages, proven by clear and convincing evidence. Related claims cover concealment and careless misstatements.

Where it fits in your case

When a deal was induced by false statements, or a party hid facts it had a duty to disclose.

What to expect

  • Concealment requires a duty to speak, such as a fiduciary or confidential relationship.

  • Negligent misrepresentation is generally limited to defendants in the business of supplying information for others’ guidance.

  • Fraud and breach can proceed together if the fraud is distinct from the broken promise.

  • Non-reliance clauses in contracts can defeat fraud claims based on outside statements.

  • Civil conspiracy requires an agreement and an underlying wrongful act.

  • Particularity. Fraud must be pleaded with specific facts.

What we need from you

The statements made, who made them and when, and evidence they were false and known to be false.

Common misconceptions

  • “Every broken promise is fraud.” A promise about the future is usually not.

  • “Fraud lets us ignore the contract.” Contract terms can limit fraud claims.

This resource provides general information about Illinois and federal law, not legal advice about your situation. Reading it does not create an attorney-client relationship. The right answer often depends on the specific facts, contract language, policy wording, and deadlines involved.

ALLISONCHOLAW / BUSINESS LITIGATION & COUNSEL

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© 2026 Allison Cho Law LLC. All rights reserved.

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