(Based on Australia Corporate Law)

Mike, an inexperienced investor, asks an acquaintance Sarah for some investment advice. Sarah has often boasted to Mike how she has made a fortune because she makes smart decisions about buying and selling the right shares at the right time. Sarah told Mike that a company called "Success Guaranteed" is floating its shares and the share price is bound to triple within a year. Mike was very excited by this prospect and invested $100,000 into "Success Guaranteed".

A year later, the company has gone into liquidation. Mike asks you if he has any common law (non-statutory) rights to sue Sarah.

Required

Advise Mike and support your answer with relevant common law.