In CASE 22.1SEC v.Texas Gulf Sulphur Co.(1971) the question was whether a press release giving a misleading impression about the results of a drilling operation violated Rule 10b-5.How did the court rule?
A) That the company acted only in response to rumors and had no obligation to set forth additional facts regarding the drilling operation, thereby negating any basis for Rule 10b-5 liability.
B) That the company violated Rule 10b-5 by issuing the misleading press release.
C) That a press release standing alone may not violate Rule 10b-5 and that the company could not be held liable because it made no actionable statements outside the press release.
D) That the company could be held liable under Rule 10b-5 but only because it issued other statements in addition to the press release.
Correct Answer:
Verified
Q26: If an insider resigns before trading,he or
Q27: There is no provision in the security
Q28: InMatrixx Initiatives v.Siracusano case referenced in the
Q32: InStoneridge Investment Partners,LLC v.Scientific-Atlanta,Inc.referenced inthetext,the U.S Supreme
Q33: The requirement that the defendant in a
Q34: Section 20(a)imposes _ liability on every person
Q35: A controlling shareholder is traditionally considered an
Q36: Lawsuits under Section 10(b)must be brought within
Q36: Under what circumstances will reliance be presumed
Q38: In relation to forward-looking statements,under the bespeaks
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents