Regarding material information in prospectus

sneha (accounts executive) (33 Points)

26 January 2011  

A prospectus issued by a company contained a promise of subscripttttion of a substantial amount by some persons so as to introduce the public to subscribe. The plaintiff who was allotted 10 shares alleged misrepresentation. Decide.

The company has stated that the person has promised to subscribe and not already subscribed , this confuses me.