Why would an employer risk the possibility of a lawsuit by providing a prospective employee with false information?

One of the problems employers face is that it is not always clear what information they should disclose to prospective employees. To lure qualified workers, employers are often tempted to “promise the moon” and paint their companies’ prospects as bright. Employers must be careful, though, to avoid any conduct that could be interpreted by a court as intentionally deceptive. In particular, they must avoid making any statements about their companies’ future prospects or financial health that they know to be false. If they do make a false statement on which a prospective employee relies to her or his detriment, they may be sued for fraudulent misrepresentation.