Health Source Inc. offers to buy Medico Supplies Corporation. On June $1,$ Medico gives Health

Source copies of Medico$$s financial statements for the previous year. The statements show an

inventory of $$10$ million. On June $15,$ Medico discovers that the previous year$$s inventory is

overstated by $$500,000,$ but does not inform Health Source. On July $1,$ Health Source, relying on

the financial statements, buys Medico. On July $10,$ Health Source discovers the inventory

overstatement. Can Health Source succeed in a suit against Medico? Explain