In the Text Case, Parshall V

question 60

Multiple Choice

In the text case, Parshall v. HCSB Financial Corporation, a plaintiff shareholder sought a preliminary injunction to stop a pending vote by shareholders of the merger between HCSB Financial and United Community Bank, Inc (UBI) . Plaintiff alleged that the Registration Statement was misleading and incomplete. Which of the following was the result?

• A) The court held that the plaintiffs' proof was insufficient under the Water's factors to issue the preliminary injunction stopping the merger vote.
• B) The court held that the plaintiff had enough proof to stop the merger vote because the defendant HCSB had hidden financial information from the shareholders in regards to the merger.
• C) The court held that the defendants according to the evidence had in fact raised issues sufficient to cause the SEC to also question the merger tactics of the companies.
• D) The court held that plaintiff was too late in the merger process to stop the vote with a preliminary injunction because the voting proxies had already been sent to hundreds of voters.
• E) The court held that the plaintiff was not the proper plaintiff to bring the case and dismissed the case.

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Definitions:

Telephone Consumer Protection Act of 1991

A federal law that restricts telemarketing calls, the use of automated telephone equipment, and other forms of telephone-based marketing.

Prerecorded Voice

Involves automated messages delivered via telephone without the need for a live speaker.

Automatic Telephone Dialing System

Technology that can dial numbers without human intervention, often used in telemarketing.

Truth-in-Lending Act

U.S. federal law designed to promote transparency in consumer credit by requiring lenders to disclose important terms and costs of loans to borrowers.