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Levart [38]
3 years ago
14

James, the CEO of a major restaurant chain, learns that he is about to be fired by the Board of Directors. Furious, he writes a

press release calling all of the company's executives "greedy scoundrels," and stating that "whoever has to fill my shoes will have to answer to the shareholders for the financial mess that they have created." James had no actual knowledge of any financial mismanagement by the company. The company's stock drops substantially in the few hours of trading that occur before the markets close after James releases his statement. The next day, James issues an apology, saying (truthfully) that his press release had no factual basis, and the stock recovers over the course of the week. Is James liable for a securities law violation?
English
1 answer:
Oksanka [162]3 years ago
8 0

Answer:

Yes, James is liable for making an untrue statement of material fact

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