ZOHAR CDO 2003-1 LTD. v. XINHUA SPORTS & ENTERTAINMENT LTD.

494, 651473/11.

137 A.D.3d 541 (2016)

26 N.Y.S.3d 689

2016 NY Slip Op 01769

ZOHAR CDO 2003-1 LIMITED et al., Appellants, v. XINHUA SPORTS & ENTERTAINMENT LIMITED et al., Defendants, and LORETTA FREDDY BUSH, Respondent.

Appellate Division of the Supreme Court of New York, First Department.

Decided March 15, 2016.


The motion court correctly found that, in view of defendant Xinhua Sports & Entertainment Limited's (XSEL) contractual agreements with its affiliates, defendant Bush's representations that XSEL had "effective control" over those companies were not false when made, and therefore could not support a cause of action for fraudulent inducement.

However, Bush failed to eliminate all material issues of fact as to whether she knew that XSEL's internal financial projections...

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