Alice v. Looking Glass Corporation
When Looking Glass Corporation decided to offer certain securities for sale to the public, it was required by federal law to provide sufficient information to Alice (as well as to all other interested unsophisticated investors), so she and the other investors would be able to evaluate the financial risk involved in the purchase of these securities. Specifically, the law imposed liability on companies that make a false statement or have an omission that is “material” in the information that they provide to interested investors. What sort of information would an unsophisticated investor such as Alice consider to be material? What standard would the company be held to by a court if Alice brought a lawsuit against it? What legal claim(s) might Alice consider bringing against Looking Glass Corporation in this lawsuit? What damages could a court award Alice if she won this lawsuit? Explain your answer and reasoning in depth.