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Alpha Investments, Inc., offers to buy Beta Computer Corporation. On May 1, Beta gives Alpha copies of Betas financial statements for the previous year. The

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

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