1. Scienter can be established by showing a defendant's motive to commit fraud. In the context of the Rand-Heart case, what act might have established motive on Dolan's part?
2. When Bank of America met with Dolan to discuss his company's financial situation, it demanded that the company be restructured. Dolan did not disclose this fact in the Form 10-Q or in his conference with stock analysts. Was this omission misleading?
3. Suppose that Dolan had disclosed Bank of America's action with respect to Discover Ready in the Form 10-Q and the conference. Would the result have been different? Explain.