Susan Kaufman v. I-Stat Corporation…

Summary

The New Jersey Supreme Court reversed the Appellate Division and reinstated the trial court's dismissal of the plaintiff's common‑law fraud and negligent‑misrepresentation claims, holding that the fraud‑on‑the‑market theory does not satisfy the reliance element under New Jersey law. The Court declined to expand the common law to incorporate the theory, citing lack of compelling reason, policy considerations, and the legislature's scheme. A dissent argued that the theory should be permissible and would have affirmed the Appellate Division.