There are many reasons why people choose to file a personal injury lawsuit, but the overarching reason is to seek damages. The U.S. legal system allows people to seek damages from parties that cause them harm.
One of the many ways that people are caused harm is through fraud. Consequently, suing someone for fraud is a legitimate reason. Fraud can occur in many ways. For example, you may give your personal financial information to a company with the expectation that the company for certain purposes. If the company then uses that information to obtain money illegally at your expense, then it has committed fraud and you can sue it.
Another way that fraud can occur is through embezzlement. Embezzlement occurs when people steal money that they are managing for others but that is not their own. Embezzlement is a common type of fraud, for it is relatively easy to do.
Furthermore, when companies provide misleading information, they have committed fraud. They may lie about their products in their advertisements. They may tell a potential client a falsehood to secure that individual’s business. They may tell a client fake information to retain the client. In effect, lying is fraud.
As the examples above make clear, fraud deals fundamentally with dishonesty. There are many ways that fraud can occur, but at its core it involves some type of cheating, and it definitely causes damage to at least one party.