In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey
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In early 2014, Bennett, Inc., offered a substantial number of new common shares to the public. Harvey Helms had a long-standing interest in Bennett because his grandfather had once been president of the company. On receiving Bennett’s prospectus, Helms was dismayed by the pessimism it embodied, so he decided to delay purchasing stock in the company.
Later, Helms asserted that the prospectus prepared by the accountants was overly pessimistic and contained materially misleading statements. Discuss fully how successful Helms would be in bringing a suit under Rule 10b-5 against Bennett’s accountants of Bennett, Inc.
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Business Law Today Comprehensive Text And Cases Diverse Ethical Online And Global Environment
ISBN: 9781285428932
10th Edition
Authors: Roger LeRoy Miller
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