Legal Question in Business Law in New York

My sisters investment firm; Omega Investments, Inc. offered to buy Beta Computer Corporation. On May 1, Beta gave Omega copies of its financial statements for the previous year and when she saw the statement showed an inventory of $1,000,000. But i heard that later that week on May 15 they discovered hat the previous year�s inventory wass overstated by $500,000 but never informed my sister's investment firm.

They went on to buy Beta on June 1st relying on information that was provided but on June 10 we discovered the inventory overstatement. If she was thinking of filing suit would succeed in prosecuting against Beta for fraud? and what if Beta had requested that we inspect and evaluate the inventory for itself before purchase but she never did.?

Where at a total lost but thanks ahead for your help


Asked on 5/23/11, 4:24 pm

3 Answers from Attorneys
Edward Hoffman Law Offices of Edward A. Hoffman

This sounds suspiciously like a modified homework question, especially since you use the past tense in May to discuss events in June.

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Answered on 5/23/11, 4:36 pm
Kristen Browde Browde Law, P.C.

Yep. It's exam time in law school....

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Answered on 5/23/11, 5:49 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree. And this person will remain at "a total lost" until they learn to write English. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 5/24/11, 7:19 am


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