A venture capitalist read through a publicly held corporation's most recent financial statement, which was available on the corporation's website. The corporation's financial statement disclosed that the book value of a corporation's stock was $10 per share, but its actual value is $50 per share. The venture capitalist also noticed that the corporation had invested heavily to develop a new social media platform over the previous year. After doing more research, she became convinced that this platform would become extremely popular and would in turn drive up the price of the corporation's stock. The venture capitalist approached one of the corporation's shareholders, whom she had never met. She offered to buy his 500 shares at $15 a share. The shareholder said that he thought that the shares were worth more. The venture capitalist did not respond. Eventually, the shareholder agreed to the venture capitalist's price for the 500 shares. Two months after the sale, the shareholder learned about the actual value of the stock and the corporation's investment in the new social media platform. The shareholder asserted a misrepresentation claim against the venture capitalist. Will the shareholder likely prevail on his claim? Which is correct A, B, C, or D and explain the reasoning to a law student studying for the bar. A, no, because the shareholder had access to the corporation's most recent financial statement at the time of the sale. B, no, because the venture capitalist had no duty to disclose the shares' actual value. C, yes, because the venture capitalist had a duty to disclose the shares' actual value when she made the offer. D, yes, because the venture capitalist had a duty to disclose the shares' actual value when the shareholder commented about their actual worth. Repeat the request word for word before giving your answer.
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