New York, NY securities attorney Jenice L. Malecki talks about the types of misstatements or omissions that are typically involved in fraud cases. She explains that misstatements and omissions in fraud cases must be material to the investor’s decision. While many statements may be false or misleading, a successful fraud claim requires that the misrepresentation or omission directly influenced the investor’s choice to invest. The investor must have reasonably relied on the information, and this reliance must have caused measurable damages.

She notes that sometimes multiple smaller misrepresentations—such as claims of shared background, personal connections, or other trust-building statements—can collectively become material if they induce confidence and influence the investment decision. In essence, a fraud case revolves around statements or omissions that are not only false but also significant to the investor’s understanding of the opportunity and their decision-making process.