ISSUE:
Whether the plaintiff can take action against the defendant for the fraudulent information declared in the company’s prospectus?
Whether the defendant is liable for the fraud?
RULE:
Fraud may be postulated, not only upon misrepresentation, but upon the breach of an absolute duty to disclose all relevant facts.
Also, fiduciary relationships create such a duty of disclosure and where superior knowledge of one party is coupled with ignorance or trustfulness in another.