Advices needed badly. Please help!!!

We bought a house about two years ago. Now found a very bad window issue which makes the water get into the walls. We just found issue out and the siddings bellow the window the previous onwer fixed . Could we ask the previous owner to pay to fix it or can we sue the previous owner for not disclousing the issue they knew? They painted the outside of house before put it on the market.

Any suggestions will be highly appreciated.