They would likely raise a "mere puffery" defense. Our legal system recognizes that in the course of business people will inevitably lie. At least a little. And so puffery, as a matter of law, is immaterial.
The puffery doctrine is quite controversial in some academic circles. Though I'm not sure it's litigated much anymore as a practical matter? At least not when it comes to civil suits alleging securities fraud.
The puffery doctrine is quite controversial in some academic circles. Though I'm not sure it's litigated much anymore as a practical matter? At least not when it comes to civil suits alleging securities fraud.
Edit- It seems it will be (at least part of) Elizabeth Holmes' defense: https://www.bloomberg.com/opinion/articles/2021-05-06/elizab...