ajeet subscibed shares issued by flardia ltd.the prospectus of flordia ltd.included a statement which was misleading in the forms and contents.on the faith of the prospectus believing it to be a true,ajeet subscribed for shares and sustained loss.can ajeet sue for compensation of loss?if so,who will be sued for such loss?
1 Answer from Attorneys
Dear Sir / Madam,
Ajeet is supposed to have fully read and understood the Red Herring Prospectus of Flardia Ltd. nor Flordia Ltd. and only thereafter, he ought to have invested in the purchase of shares. So it remains Ajeet's primary responsibility "not to have counted the chickens before they are hatched".
Anyway, Ajeet will now have to specifically highlight the specific clauses which were misleading in form and content to the of the Company and then lodge a claim for the loss and prove it. If proved, the underwriter will have to make good the loss suffered by Ajeet.
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