Problem
Mauri and Sri won $1,000,000 in the 649 lottery. Unsure what she should do with her share of the money, Mauri consulted Jena, a friend of hers who was an investment counselor. Jena advised Mauri to invest in a junior mining company, which according to a story Jena had read on the Internet, had rights to a very lucrative gold mine in Indonesia. Mauri told Sri about Jena's tip and they each invested $250,000 in shares in the mining company. Unfortunately, the gold mine did not pan out and the shares they bought for $25.00 each dropped in value to $.25.
1. Would Mauri succeed in a legal action for damages against Jena? Explain.
2. Would Sri succeed in a legal action for damages against Jena? Explain.