Multi Investments,Inc

Essay

Multi Investments,Inc.,offers to buy Nano Toy Corporation.On May 1,Nano provides copies of its financial statements for the pre-vious 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 fi-nancial statements,buys Nano.On June 10,the buyer discovers the inven-tory over-statement.Can Multi succeed in a suit against Nano for fraud?