Newcastle Inc. issued over 100,000 shares of stock based on the projection that its productivity over the next few years would triple and that the growth would have a positive impact on its profits and value. Unfortunately, due to a severe and unpredicted economic downturn, its productivity went down and the value of the stock plummeted. Several of the investors filed a private liability lawsuit. Which of the following is true about Newcastle's liability?

a. Newcastle is not liable if the statements were known to be false when they were made.

b. Newcastle is liable under all circumstances because it did not meet its promises.

c. Newcastle is liable even if it provided investors with cautionary statements or risk factors.

d. Newcastle is not liable if the statements were made in good faith at the time they were made and contained cautionary warnings.

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