Appellate Division Affirms Dismissal of Claims Against Ryan Kavanaugh

On April 30, Skadden won affirmance of an order dismissing all claims with prejudice asserted against Ryan Kavanaugh, the former CEO of Relativity Media LLC, to which RKA Film Financing, LLC asserted it was fraudulently induced to loan money. The trial court concluded that the plaintiff failed to plead fraud with the requisite particularity and granted dismissal with prejudice of all claims against Mr. Kavanaugh. In affirming the dismissal, the Appellate Division, First Department, concluded that the claims “do not support a claim of fraud” and further dismissed aspects of the claims because they were “disguised claims for breach of contract” or “there was no nexus between the alleged statements and plaintiff’s losses.”