Wouldn't corporate fraud be opening them to a lawsuit? Say your a hedge fund that decided to invest and buy 23% of availabile market shares, the fraud of misrep

Wouldn't corporate fraud be opening them to a lawsuit? Say your a hedge fund that decided to invest and buy 23% of availabile market shares, the fraud of misrepresenting the company's situation leaves investors with no way to trust a market, and basically your stuck relianing on the financial reports alone.