Albert is the principal shareholder of a large investment company and holds 45 percent of its common shares,which are valued at $500 000.00.Recently,Albert's company invested heavily in a gold mining company,which fraudulently represented finding and owning a new gold deposit in northern Canada.Albert's company lost a substantial amount of money,with the result that the value of Albert's common shares dropped to $25 000.00.Albert now launches a lawsuit against the gold mining company for the loss in value of his shares.In this case
A) Albert will be entitled to a quantum meruit claim against the gold mining company.
B) Albert will recover his loss because his cause of action is in fraud or deceit.
C) Albert will not recover his loss because he has no claim for damages for a wrong done to his company.
D) Albert will recover his loss because the court will lift the corporate veil of the gold mining company.
E) Albert will recover his loss because the court will force the gold mining company to insure his shares.
Correct Answer:
Verified
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