Business fraud is a false statement of fact, a false promise or a concealed fact that leads a company or investor to sign a contract, buy a business or invest money it otherwise would not have. A fraud claim can reach remedies a contract claim can't, including exemplary damages in some cases.
We bring fraud claims for businesses, owners and investors, and we defend companies and individuals accused of fraud. These cases often grow out of an acquisition, a private investment, a real estate deal or a supply relationship.
A false statement or promise that led someone to sign a contract or close a deal.
Silence about a material fact when the law required the other side to speak.
Claims under Texas law for fraud in real estate and corporate stock transactions.
Misstatements and omissions in the sale of an investment.
In general terms, the claimant must show a material misrepresentation that the speaker knew was false or made recklessly, intending it to be relied on, and that the claimant relied on to its harm. Each type of fraud adds its own rules:
The misrepresentation led to a contract, so the claim depends on the agreement the parties signed.
Silence can be fraud when there is a duty to speak, such as in a fiduciary relationship, or when a partial disclosure leaves a false impression.
A Texas statute covers false statements of fact and false promises made to induce a contract for real estate or corporate stock, and it allows recovery of attorney's fees.
Misled investors may have claims under the Texas Securities Act as well as for common-law fraud.
A Texas fraud claim must be filed within a limited time, and the period usually begins when the fraud was discovered or should have been discovered with reasonable diligence, not when the deal closed. Once a claimant has enough information to start investigating, the clock is running. Texas Securities Act claims have their own deadlines, and some are measured from the date of the sale, so they can run out even before the problem is discovered.
The defense usually turns on reliance and intent: whether the claimant actually and justifiably relied on the statement, whether the contract disclaimed reliance, and whether the dispute is really about performance, since failing to perform a contract is not by itself evidence of fraud. Many fraud disputes are resolved through negotiation or mediation before trial.
We line up what was said, when, by whom, and what the client did in reliance.
Reliance disclaimers, merger clauses and indemnity terms can shape or limit the claim.
Emails, texts, financial records and deal drafts are collected before they are lost.
A detailed demand often leads to negotiation or mediation before a lawsuit is filed.
When the case doesn't resolve, we prove the claim, or defend against it, in court.
Have a question that isn't answered here? Call us at (817) 631-8842 or send a message.
Ask a QuestionOften, yes. If the other side lied to get the contract signed, a fraudulent inducement claim can be brought along with the breach of contract claim. A broken promise alone is usually only a breach of contract, unless the promise was made with no intention of keeping it.
It can. Texas courts enforce clear disclaimers of reliance, especially in contracts negotiated at arm's length by sophisticated parties with lawyers. A general merger clause saying the contract is the entire agreement usually isn't enough by itself.
Texas calls them exemplary damages. They require clear and convincing proof of fraud and a unanimous jury, and the amount is capped in most cases, with exceptions for certain criminal conduct. Statutory fraud claims in real estate and stock transactions also allow exemplary damages when the defendant knew the statement was false.
Yes. Closing doesn't end a fraud claim, and many purchase agreements leave fraud outside the caps and other limits on a seller's indemnity obligations. How the agreement defines fraud, and whether it disclaims reliance, often decides how far that exposure reaches. See buying a business.
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