An untrue statement of material fact refers to a false statement that is made to deceive another person or party in a business transaction. It is a misrepresentation of facts that are considered significant and relevant to the transaction at hand. In legal terms, this type of statement is often referred to as fraud or fraudulent misrepresentation. To be considered an untrue statement of material fact, three key elements must be present. First, the statement must be false or inaccurate. It should not reflect the truth or reality of the situation. Second, it must be a material fact, meaning it is an important piece of information that would influence the decision-making process of the other party involved. Finally, there must be an intention to deceive. The person making the false statement must know of its falsity and must make the statement with the intent to mislead or deceive the other party. Untrue statements of material fact can occur in various business contexts, such as during negotiations, contracts, or sales transactions. For example, if a seller knowingly misrepresents the condition of a product or fails to disclose a defect, it would be considered an untrue statement of material fact. Similarly, if a company provides false financial information to investors to attract investments, it will also fall under this category. The consequences of making an untrue statement of material fact can be significant. The injured party may suffer financial loss or damage as a result of relying on the false information. They may also lose trust in the person or entity that made the false statement. In legal terms, the injured party may have grounds for legal action and seek remedies such as rescission of a contract, damages, or even criminal charges in cases of intentional fraud. To protect against untrue statements of material fact, individuals and businesses need to exercise due diligence in their dealings. This includes conducting thorough research and verification of information provided by others. It is also advisable to have written contracts or agreements that clearly outline the terms and conditions of a transaction, including any warranties or representations made by either party. In case of suspicion or discovery of an untrue statement, seeking legal advice promptly can help navigate the situation and protect one's rights and interests. The Law Offices of Timothy L. Miles Tapestry at Brentwood Town Center 300 Centerview Dr., #247 Brentwood, TN 37027 Phone: (855) 846–6529 Email: [email protected] timothy l. miles, esq.Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors, shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,Class Action: Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022). Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more. Please visit our website or call for free anytime. Comments are closed.
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The Law Offices of Timothy L. Miles Tapestry at Brentwood Town Center 300 Centerview Dr., #247 Brentwood, TN 37027 Phone: (855) 846-6529 Email: [email protected] HOURS OF OPERATION Mon-Fri: 24/7 Sat-Sun: 24/7 |