Irene is a representative of Baroque Minerals, Inc., a publicly traded mining company. Irene states publicly that Baroque has discovered a significant deposit of a rare mineral in China, which promises to substantially increase the long-term revenue of the company. Unbeknownst to Irene, an unexpected earthquake that same day destroys the mine in China and blocks access to the rare mineral for years to come. The company's stock drops as a result. Baroque Minerals will likely be:
a. liable under SEC Rule 10b-5.
b. not liable under SEC Rule 10b-5, because Irene did not make a material misrepresentation.
c. not liable under SEC Rule 10b-5, because Irene did not have a wrongful state of mind.
d. not liable under SEC Rule 10b-5, because Irene because of the natural exigency defense to such claims.
Ans: c. not liable under SEC Rule 10b-5, because Irene did not have a wrongful state of mind.
You might also like to view...
When Juan's company introduced its new product in the market, it introduced it at the lowest possible price assuming that the demand for the product is going to be highly responsive to the introduction price
It also believes that a higher sales volume will lead to lower unit costs and higher long-run profit. What can be said about the company's objective?
Which of the following terms is used to reflect maximizing the similarity of the training to the job?
A) Identical elements B) Increased similarity C) Repetitive responding D) Identical skills