Alpha Investments,Inc

Essay

Alpha Investments,Inc.,offers to buy Beta Computer Corporation.On May 1,Beta gives Alpha copies of Beta's financial statements for the pre?vious year.The statements show an inventory of $1 million.On May 15,Beta discovers that the previous year's inventory is overstated by $500,000,but does not inform Alpha.On June 1,Alpha,relying on the fi?nancial statements,buys Beta.On June 10,Alpha discovers the inven?tory over?statement.Can Alpha succeed in a suit against Beta for fraud?