Does The Buyers Amended Complaint Plead Facts With Particularity To Establish A Claim Of Fraud As Required By Rule 9(b)?
The elements of common law fraud that a plaintiff must plead are familiar. To state a claim, the plaintiff must plead facts supporting an inference that: (1) the defendant falsely represented or omitted facts that the defendant had a duty to disclose; (2) the defendant knew or believed that the representation was false or made the representation with a reckless indifference to the truth; (3) the defendant intended to induce the plaintiff to act or refrain from acting; (4) the plaintiff acted in justifiable reliance on the representation; and (5) the plaintiff was injured by its reliance.29 Most of those elements must be pled with particularity, as set forth in Court of Chancery Rule 9(b), which states: “[i]n all averments of fraud or mistake, the circumstances constituting fraud or mistake shall be stated with particularity. Malice, intent, knowledge and other condition of mind of a person may be averred generally.” To satisfy Rule 9(b), a complaint must allege: (1) the time, place, an
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