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Question
Multi Investments, Inc., offers to buy Nano Toy Corporation. On May 1, Nano provides copies of its financial statements for the preÂvious year, showing an inventory of $10 million. On May 15, Nano discovers that the previous year's inventory is overstated by $5 million, but does not inform Multi. On June 1, Multi, relying on the fiÂnancial statements, buys Nano. On June 10, the buyer discovers the invenÂtory overÂstatement. Can Multi succeed in a suit against Nano for fraud?Answer
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