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The elements of a Rule 10b-5 cause of action require that a misstatement or omission be...

The elements of a Rule 10b-5 cause of action require that a misstatement or omission be material. Which of the following statements or omissions would be considered material? Choose that ALLthat apply.

a.

Statements concerning a company’s earnings

b.

An omission regarding the loss of a corporation’s major customer

c.

A statement of vague corporate optimism

d.

A statement of puffing regarding the company’s latest products.

e.

An omission regarding an impending tender offer

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Answer #1

a, b, c, d - These could be considered material because these factors can influence the decisions of the stakeholders.

e - This is not a material omission

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