Old Slip's Fraudulent-Inducement Claim Against Allstate Survives Summary Judgment and Advances Toward Jury Trial

Federal court finds genuine factual disputes over representations made to James Lukezic before Old Slip entered the Allstate agency relationship

WHITE PLAINS, N.Y., Aug. 6, 2026 /PRNewswire/ -- Old Slip Benefits & Insurance Services, LLC announced today that its fraudulent-inducement claim against Allstate Insurance Company and Allstate Financial Services, LLC has survived summary judgment and will proceed toward trial in the United States District Court for the Southern District of New York.

In a 24-page Opinion and Order issued on August 6, 2026, U.S. District Judge Vincent L. Briccetti denied Allstate's request for summary judgment on Old Slip's fraudulent-inducement claim. The court concluded that Old Slip had raised genuine issues of material fact concerning whether it reasonably relied on representations allegedly made by Allstate personnel during the sales process. The court stated: "Accordingly, plaintiff's fraudulent inducement claim may proceed."

A Significant Victory for Old Slip and James Lukezic
The ruling preserves the central allegation that James Lukezic and Old Slip were induced to enter the Allstate relationship by representations that Mr. Lukezic could retain his FINRA licenses, continue serving outside customers with non-insurance financial products, and cross-sell Allstate insurance products to those customers. Allstate challenged the reliance and injury elements of the claim, but the court rejected Allstate's attempt to resolve those issues as a matter of law. Plaintiff's fraudulent inducement claim is based upon the alleged representation by Allstate personnel that Mr. Lukezic (i) did not have to transfer his FINRA licenses to AFS, and (ii) he could continue to sell and service outside customers for non-insurance financial products and cross-sell Allstate insurance products to those customers.

The court found that the written agreements, standing alone, did not establish that Old Slip's reliance was unreasonable. It determined that the governing documents were sufficiently ambiguous concerning Mr. Lukezic's outside securities activities that the issue could not be decided against Old Slip on summary judgment. The court also rejected Allstate's arguments that Mr. Lukezic ignored supposed "red flags" or that general integration language in the agency agreement barred the fraud claim. Thus, the written agreements, standing alone, do not establish that plaintiff's reliance was per se unreasonable. Accordingly, the Court cannot say as a matter of law that the governing agreements expressly and unambiguously contradict plaintiff's supposed understanding regarding his outside activities. At this stage of the case, with all reasonable inferences drawn in plaintiff's favor, the Court cannot say these facts constitute "red flags" that should have prompted further investigation.

The ruling further recognizes that Old Slip identified an injury distinct from its dismissed contract-based claim, including alleged lost start-up costs and liabilities incurred in launching the agency. That determination allows Old Slip to continue pursuing relief on its fraudulent-inducement theory. However, plaintiff identifies at least one injury distinct from the implied covenant of good faith claim. (See Doc. #69 ¶ 85 (alleging fraudulent inducement caused loss of start-up costs plaintiff incurred, such as liabilities to landlords and banks)).

"This ruling is an important vindication of Old Slip's position and of James Lukezic's determination to hold a major insurance company accountable," said a spokesperson for Old Slip. "The court recognized that the disputed representations, the meaning of the governing documents, and Old Slip's reliance cannot simply be swept aside. Mr. Lukezic welcomes the opportunity to present Old Slip's evidence to a jury."

Case Now Moves Toward Trial
The court ordered the parties to appear for an in-person case management conference on September 16, 2026, at the White Plains courthouse. At that conference, counsel must be prepared to discuss setting a trial date and establishing a schedule for pretrial submissions. The court also directed the parties to engage in good-faith settlement discussions before the conference.The Court will conduct a case management conference on September 16, 2026, at 9:30 a.m., to be held in person at the White Plains courthouse, Courtroom 620, at which time counsel shall be prepared to discuss, among other things, the setting of a trial date and a schedule for pretrial submissions, as well as what good faith efforts they have made and will continue to make to settle this case.

Although the court dismissed Old Slip's separate claims for breach of the implied covenant of good faith and fair dealing and violation of the New York Franchise Sales Act, the fraudulent-inducement claim—the claim concerning the alleged pre-contract representations made to Mr. Lukezic—survived and remains for adjudication. To summarize, defendants are entitled to summary judgment on plaintiff's breach of the implied covenant of good faith and fair dealing claim and its NYSFA claim. Those claims are dismissed. Plaintiff's fraudulent inducement claim may proceed.

Old Slip views the decision as a meaningful step forward for entrepreneurs and independent business owners who rely on representations made by large corporations when committing substantial resources to a new business relationship. Mr. Lukezic remains focused on protecting Old Slip, its clients, and the businesses he built, while pursuing a full and fair resolution of the surviving claim.

About Old Slip
Old Slip is a group of financial-services businesses owned and operated by James Lukezic. The group includes Old Slip Benefits & Insurance Services, LLC, a licensed insurance agency and the plaintiff in this action; Old Slip Registered Investment Advisors, LLC, an investment advisory business; and Old Slip Capital Management, Inc., a mutual-fund retailer and broker-dealer. James Lukezic owns and operates a group of businesses collectively known as "Old Slip," consisting of three entities: (i) Old Slip Registered Investment Advisors, LLC, an investment advisory business; (ii) Old Slip Benefits & Insurance Services, LLC, a licensed insurance agency, and the plaintiff in this action; and (iii) Old Slip Capital Management, Inc., a mutual fund retailer and broker-dealer.

Case Information
Old Slip Benefits & Insurance Services, LLC v. Allstate Insurance Company and Allstate Financial Services, LLC, Case No. 25-cv-1110 (VB), U.S. District Court for the Southern District of New York.

Media Contact:
Old Slip Benefits & Insurance Services, LLC
Peter King
[email protected]

Important Litigation Notice
The court's summary-judgment ruling does not constitute a finding that Allstate committed fraud. The surviving claim remains disputed, and Old Slip will bear its burden of proof at trial. No trial date had been set as of the date of this release.

SOURCE Old Slip Capital Partners