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.

---

Definitions:

Previously Unconscious

Refers to thoughts, feelings, or desires that were not in an individual's conscious awareness but have since been brought to attention.

Free Association

A psychoanalytic technique in which a patient speaks freely about their thoughts, feelings, or images, to uncover unconscious desires or conflicts.

Therapeutic Success

The achievement of desired outcomes or improvements in symptoms and quality of life through any form of therapy or treatment.

Cognitive Therapy

A type of psychotherapy that addresses negative patterns and distortions in the way we look at the world and ourselves.