Dodgers, Inc. and Angels, Inc. are two publicly traded corporations. The management teams of Dodgers, Inc. and Angels, Inc. entered into negotiations for Dodgers, Inc. to acquire Angels, Inc.  Despite the secrecy of the negotiations, there were repeated instances of trading in the stock of Angels, Inc.  Mike Trout, the CEO of Angels, Inc. was asked if the increased trading in its stock was due to negotiations for a possible acquisition of Angels, Inc. by any other corporation.  Not wanting to put the negotiations in jeopardy, Trout responded by issuing the following public statement:   “The company knows no reason for the stock’s activity. No negotiations are underway with any company regarding an acquisition.”  Jackie Robinson was an Angels, Inc. shareholder, who decided to sell his stock after he read the public statement.  Two weeks later, the acquisition of Angels, Inc. by Dodgers, Inc. was announced and the stock price of Angels, Inc. rose by 50%.  Robinson filed suit against Angels, Inc. for violation of Securities Exchange Act Rule 10b-5. 

a. How should the court rule on Robinson’s lawsuit? Explain your answer.