On May 27th, a New York Appellate Court considered whether New York state law recognizes a claim for fraudulent inducement to hold, rather than sell, stock. Plaintiff claimed it was induced to hold AIG stock by AIG's misrepresentations concerning the value of its CDS portfolio. Affirming dismissal, the Court held the claim violates the "out-of-pocket" rule governing damages recoverable for fraud. The measure for fraud damages is what was lost because of the fraud, not compensation for what might have been gained. The Starr Foundation v. American International Group.