This area is part of tort law although it is closely related to contract law. Misrepresentation refers to false statement of facts not opinions. Importantly, the misrepresentation must be operative or act as an inducement. This means that the false statement must affect the contracting party and induce him into entering the contract.
In the light of the Lehman Brothers fiasco, there are questions about whether a mass lawsuit can be filed against the sellers of Minibonds and other exotic instruments for misrepresentation. If the misrepresentations are made in a written document, then there are no major problems (see for example, the Raffles Town Club lawsuits, although the court found there was no misrepresentation). However, where the statements are made wholly or partially orally, trying to start a mass lawsuit (or what lawyers would call a class action lawsuit) would pose many problems.
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