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:

Child's Mind

Refers to the mental capacity, cognitive development, and psychological understanding of a child.

Maturation

The process of development in which an individual matures or reaches full functional capacity, particularly in the context of physical and cognitive growth.

Neural Interconnections

The connections between neurons in the brain that allow for communication through synapses, forming complex networks that underlie thought, behavior, and perception.

Infantile Amnesia

The inability of adults to recall memories from early childhood, typically before age 3-4 years.