What Was the Result on Appeal in Steven Klein, Warren

question 20

Multiple Choice

What was the result on appeal in Steven Klein, Warren Brandwine v. General Nutrition Companies, Inc., the case in the text in which the plaintiffs claimed that defendant GNC violated several securities regulations by failing to disclose material facts in its prospectus?

• A) That the defendant violated securities regulations by failing to disclose a possible loss of advertising support based on the advertiser's decrease in sales.
• B) That the defendant violated securities regulations by failing to disclose a worldwide vitamin E shortage that could affect the defendant's sales.
• C) That the defendant violated securities regulations by failing to disclose that same-store sales were being adversely affected by the opening by the defendant of new stores in close proximity to old stores.
• D) That the defendant violated securities regulations by failing to disclose a possible loss of advertising support based on an advertiser's decrease in sales; by failing to disclose a worldwide vitamin E shortage that could affect the defendant's sales; and by failing to disclose that same-store sales were being adversely affected by the opening by the defendant of new stores in close proximity to old stores.
• E) That there was no violation of securities laws because all alleged omissions were immaterial as a matter of law.

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Definitions:

Taino Indians

Indigenous peoples of the Caribbean who were among the first to encounter Christopher Columbus in 1492.

European Perception

Refers to the way European nations and their citizens view or interpret events, cultures, policies, and international relationships.

Cannibals

Individuals or animals that eat the flesh of their own species, a practice observed in some cultures and species for various reasons, including ritual, warfare, or survival.

Columbian Exchange

The widespread transfer of plants, animals, culture, human populations, technology, diseases, and ideas between the Americas and the Old World following Columbus's voyages.