With no explanation, chose the best option from "A", "B", "C" or "D". existence of the marketing agreement or the fact that the agreement covered revenues recorded and recognized prior to the end of the fiscal year. Complaint, ¶ 53. As a result, defendants’ disclosure of the agreement does not support the conclusion that they intended to dispel the allegedly misleading effect of the financial statements. It also, therefore, does not negate the inference that defendants made the material misstatements with either a specific or reckless intent to defraud. As stated above, the complaint alleges that Chantal’s method of revenue recognition was inconsistent with SFAS 48. Premature accounting recognition of this kind by corporate defendants, where a right of return is clearly capable of exercise, permits an inference of scienter. See Malone, 26 F.3d at 478-480 (<HOLDING>). When considered in light of the other

A: holding that there was no inference of scienter based on defendants knowledge of facts or failure to monitor information because plaintiffs did not specifically identified any reports or statements that existed or would have come to light in a reasonable investigation that would have demonstrated the falsity of the allegedly misleading statements
B: holding that misleading newspaper ads and letters which were mailed need not be false or fraudulent on their face and the accused need not misrepresent any fact since it is just as unlawful to speak half truths or to omit to state facts necessary to make the statements made in light of the circumstances under which they were made not misleading
C: holding that jury could make inference that corporate defendants false or misleading statements regarding sales which violated sfas 48 were made with an intent to deceive manipulate or defraud investors based on evidence that defendants were aware of the right of return and approved it
D: holding that even if defendants knew that the company had inventory problems  that fact standing alone does not show that defendants knew that the statements in their prospectus or other representations were materially false or misleading at the time the material statements were made
C.