Los Angeles Lawyers for Fraud Lawsuits

In California, individuals and companies are able to sue each other for misrepresentations and other acts that result in undeserved benefits or cause losses to another. Fraud is often perpetrated by someone with a desire for financial gain or to escape criminal charges. A number of acts are punished as fraud even when they aren’t associated with financial gain for a company. Both civil and criminal actions may be taken against a business or businesses that engage in fraud. It is important to consult a seasoned Los Angeles business litigation attorney about bringing or defending against a fraud lawsuit. Mehdian Law, A.P.C attorneys represent clients in the full range of civil fraud claims, from misrepresentation of fact to conversion or misappropriation of funds.

Business Fraud

Different types of fraud are actionable in California. Individuals and businesses may assert claims for intentional misrepresentation, fraud by concealment and false promise. Each type of fraud requires an attorney to attend carefully to the facts and the legal cause of action that should be asserted for relief. Sometimes multiple remedies must be pursued.

To prove a claim for intentional misrepresentation in California, the plaintiff’s lawyer must show the following: (1) the defendant knew the falsity of the representation, (2) the defendant intended that the plaintiff rely on the false representation, (3) the plaintiff’s reliance on that misrepresentation as reasonable, (4) the plaintiff’s reliance was a substantial factor in causing harm.

When a plaintiff claims fraud by concealment, his attorney must establish that the defendant sat in a position where it was required that information be disclosed but was not, that there was an intent to deceive, justifiable reliance, and that the concealment was a substantial factor in causing harm. Sometimes fraud by concealment is asserted alongside a claim of breach of fiduciary duty because the defendant who committed the fraud was a fiduciary, such as a business partner or officer. In some cases, parties have made only selective disclosures to those to whom they owe a duty. When these selective disclosures seem to be deceptive and harmful, it is important to retain a seasoned business litigation attorney to investigate and assert all available causes of action to protect the individual or the business that fell prey to fraudulent actions.

False promise lawsuits may be commenced when a defendant has made a promise to a plaintiff that it didn’t intend to keep at the time the promise was made, and thereby caused harm to the plaintiff.

Fraud lawsuits are challenging to litigate. Often a company’s existence depends on the outcome of the lawsuit, and an adverse decision may be devastating to its operations and the continues life of the business.

Damages for Fraud

Damages when a fraud lawsuit is successful may be calculated according to the out-of-pocket rule or the benefit-of-the-bargain rule. Commonly, plaintiffs recover damages according to the out-of-pocket rule, which seeks to restore a plaintiff to the financial position he or she enjoyed before the fraudulent transaction. The plaintiff, in other words, receives the difference in the actual value between what the plaintiff gave and what he received. When the benefit-of-the-bargain rule is used, the jury awards the difference in value between what the plaintiff actually received and what he was fraudulently led to think he would receive under the circumstances.

Fraud lawsuits may subject a defendant to punitive damages, which are damages intended to deter future wrongdoing and punish a wrongdoer.

Consult a Seasoned Los Angeles Fraud Attorney

The Los Angeles fraud lawyers of Mehdian Law A.P.C have successfully prosecuted and defended businesses in fraud lawsuits for many years. Working closely with our clients, we help them achieve their goals and fearlessly protect their interests. Whether you or your business has been sued for fraud, or you need to bring a lawsuit, you should hire an experienced Los Angeles business litigation attorney. Ben Mehdian of Mehdian Law, APC can develop a sophisticated strategy to provide the strongest possible defense for your company and pursue remedies as appropriate. Call us at (844) 463-4342 or (310) 889-0706 or contact us to schedule a consultation.

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