What is Injurious Falsehood?
Injurious falsehood is a “tort,” or civil wrong, for which compensation may be available where a statement is made about a person’s or company’s business, which produces actual damage.
It is not an action for defamation, although it shares some characteristics with defamation actions.
An injurious falsehood claim may be available if the person who is the subject of the statement can prove the following:
- That a false statement was made of or concerning the person’s business or goods;
- The statement was published to someone other than the plaintiff;
- The person making the statement intended to cause harm. Malice is therefore required to be proven on behalf of the publisher by the plaintiff;
- The plaintiff can prove actual damage, such as loss of business which is caused by the false statement. The falsehood must cause the harm which is harm of a kind, which is intended, or a harm which is the natural and probable consequence of the making of the false statement.