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Fraud and Negligent Misrepresentation

Fraud and Negligent Misrepresentation in Los Angeles 

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Cases involving negligent misrepresentation and fraud can often involve other issues such as breach of contract and business fraud. These are all crucial issues that can jeopardize the success and prosperity of a business. Swift and aggressive legal action should be taken to arrest further harm and seek restitution for any damages that resulted from the actions of the other party. Our Los Angeles business litigation attorneys are ready to assist you and pursue justice and a fair resolution.

Difference Between Fraud and Misrepresentation

There is a difference between negligent misrepresentation and fraudulent misrepresentation.

Any form of fraud is much more serious than dealings involving negligence. Fraudulent falsification occurs when the instigator shows a reckless disregard for the truth of the matter. They purposefully provide information that is false with intent to deceive and harm either their business or another company.

Negligent misrepresentation involves businesses and individuals that claim to provide certain skills, but cannot fully follow through on their end. The company at fault often is careless in how they represent the business. Misrepresentation is not as intentional as fraud.

What Constitutes Misrepresentation?

Under any form of contract, there are certain promises that are made and when they are not followed through with, it can create significant turmoil. Many different situations and issues can result in falsely representing the truth, but there are five factors that can be involved with each, including:

  1. Someone falsely represented a current or past fact
  2. The person who falsely represented has no basis in fact for believing in its truth
  3. The false representation was intentionally made to convince another of its "truth"
  4. The other party believed the misrepresentation
  5. The other party who relied on the misrepresentation suffered harm as a result

Many cases of misrepresentation can be found as "innocent" in that they had reasonable grounds to believe what they had presented before the public. These situations are fairly simple matters to resolve in many cases.

When fraud is involved, however, the matter becomes much more serious and the legal actions taken must be more severe. The lawyer you want representing your interests in this type of case should be skilled, knowledgeable and a proven litigator.

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What Are Some Common Examples of Negligent Misrepresentation in Business?

Some common examples of negligent misrepresentation in business include:

  • Exaggerating the qualities or features of a product or service beyond its actual capabilities.
  • Providing inaccurate financial information or misleading projections to investors or stakeholders.
  • Falsely claiming to have certain certifications, qualifications, or affiliations.
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