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The main legal issue in Edgington v Fitzmaurice (1885) centers on misrepresentation in the context of a company's prospectus. The case involved allegations that the defendants had issued a prospectus containing false statements regarding the company's intentions for fundraising, which were misleading to potential investors. The court had to determine whether the misrepresentation was fraudulent and if the plaintiffs were entitled to damages as a result of relying on those false statements. Ultimately, the case highlights the importance of truthful disclosures in securities offerings and the legal implications of misleading information.

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