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must research current newspaper articles (I recommend the Wall Street Journal, but any business newspaper or business section of newspapers will suffice). The article must relate specifically with a...

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must research current newspaper articles (I recommend the Wall Street Journal, but any business newspaper or business section of newspapers will suffice). The article must relate specifically with a topic, issues or ethical dilemmas dealt in the lecture. The paper must state: a) brief summary of the article; b) how the article relates to the lecture or the course; c) student’s own critical analysis of the article’s main position or issue and d) how the student will solve or handle the problem, dilemma or issue reported in the article. This is a “short paper.” I will accept a paper as short as two pages double spaced, but it can be as long or comprehensive as the student wishes
Answered Same DayNov 30, 2021

Solution

Bichitrananda answered on Dec 02 2021
54 Votes
Business Law: Creation of a false market by Mye
The article by (Jenner, 2019) is on the class action that was
ought against Myer by the shareholders for the misleading information that led to the manipulation of the price of shares in the market. However, the case didn’t go as expected in the federal court regarding the class action. In general, when a class action is filed against a Corporation, the plaintiff needs to only prove that the misleading information given by the corporation affected the market conditions. However, based on the federal court’s decision this article discusses why that is not enough. The federal court ruled in favor of Myer in the class action of misleading information that was filed against them by the shareholders. So what did Myer do? The Chief Executive Officer of Myer, in September 2014, had said that the projected profit after tax was going to be higher at the end of 2015 than the previous year, which was about $98.5 million. In March 2015, Myer showed a forecast which was lower than what Brookes, the former CEO had said. The issue with this information was the change in the market price as it sky-rocketed the stock price of Myer. The shareholders found that this misleading information should have been co
ected as it had a huge impact on the market behavior of buyers who bought too many shares based on the information. The article also draws insights from the legal rules stated in the Corporation Act. The obligations that Myer had failed to perform. How the court considered all the facts relevant to make a decision and why the information given by Myer wasn’t misleading is discussed in the article.
           This article is related to corporate law and deals with legal implications that public limited companies face in the market. The significance of what information to release to the public and the accuracy of the...
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