In this task, you will be shown a prompt from a judicial decision and multiple holding statements derived from citations following text in a legal decision.  Holdings represent the governing legal rule when the law is applied to a particular set of facts. There are five answer choices for each citing text. The correct answer is the holding statement that corresponds to the citing text. The four incorrect answers are other holding statements. You should find the correct option. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.

(3) the de fendant’s culpability in the fraud perpetrated by the controlled person. See Securities & Exchange Com’n v. First Jersey Securities, Inc., 101 F.3d 1450, 1472 (2d Cir.1996). First, as the Court has found, plaintiffs have failed properly to plead a violation of the 1934 Act. Second, as we also have noted, plaintiffs have failed properly to allege scienter and/or culpability on the part of “Merrill Lynch.” Even had we found a properly pled violation of the 1934 Act, we would not automatically impute this violation to “Merrill Lynch” as a controlling entity. See Baesa, 969 F.Supp. at 242 (“[T]he law in this circuit is clear that a subsidiary’s fraud cannot be automatically imputed to its corporate parent.”). See also Chill v. General Elec. Co., 101 F.3d 263, 270 (2d Cir.1996) (<HOLDING>). Novak, 997 F.Supp. at 435. Finally the Court 
 Holding statements: (A) holding that a parent must exercise some control over the subsidiarys activities which does not require that the subsidiary be controlled to an ultimate degree by its parent  although something more than mere passive investment by the parent is required the parent must have and exercise control and direction  over the affairs of its subsidiary in order for venue to be proper (B) holding that district court has the power to decide what portion of subsidiarys income should be reallocated to its parent (C) holding that a parent company would at the very least have to have been deliberately blind to its subsidiarys fraud in order to have the requisite scienter (D) holding that even in separate trial other crimes evidence would not have been admissible and identification testimony would have been admissible (E) holding that a subsidiarys contacts can be imputed for purposes of service of process where a parent uses the subsidiary to do what it otherwise would have done itself 
(C)

with the same deficiency — the court should strike his pleading or, depending on the circumstances, dismiss his case and consider the imposition of monetary sanctions.”). We are not, however, convinced that the instant case was one with respect to which a dismissal with prejudice was appropriate under the circumstances. Moreover, a complaint — so long as it is minimally sufficient to put a defendant on notice of the claims against him — will not fail for mere surplusage. See United States ex rel. Garst v. Lockheed-Martin Corp., 328 F.3d 374, 378 (7th Cir.2003) (“Surplusage can and should be ignored. Instead of insisting that the parties perfect their pleadings, a judge should bypass the dross and get on with the case.”); Davis v. Ruby Foods, Inc., 269 F.3d 818, 820 (7th Cir.2001) (<HOLDING>). We have recognized that “[pleading facts not 
 Holding statements: (A) holding it was not an abuse of discretion to exclude testimony (B) holding failure to exercise discretion is abuse of discretion (C) holding that the appropriate standard of review is abuse of discretion (D) holding that it is an abuse of discretion  to dismiss a complaint merely because of the presence of superfluous matter (E) holding it was not an abuse of discretion to deny funds
(D)

words are used in the same context, we assume that the words have different meanings.” Dereje v. State, 837 N.W.2d 714, 720 (Minn. 2013). Again, “inflict” means “to lay (a blow) on” or “cause (something damaging or painful) to be endured.” Webster’s Third New International Dictionary, supra, at 1160. “[Cjause” means to “bring into existence” or “effect by command, authority, or force.” Id. at 356. Dorn cites a Sixth Circuit case for the notion that the “best” interpretation of “inflict” is “something more precise—and thus something narrower”—than “cause.” United States v. Zabawa, 719 F.3d 555, 560 (6th Cir. 2013). Specifically, Zabawa concluded that “inflict” indicates “a sense of physical immediacy: to cause harm directly, by physical force.” Id. at 560; see, e.g., id. at 559-61 (<HOLDING>); United States v. Jackson, 310 F.3d 554, 557 
 Holding statements: (A) holding that a plaintiff may recover damages for emotional distress caused by observing the negligently inflicted injury of a third person if but only if said plaintiff 1 is closely related to the injury victim 2 is present at the scene of the injury producing event at the time it occurs and is then aware that it is causing injury to the victim and 3 as a result suffers serious emotional distress (B) holding that a photograph of the hands of the murder victim tied behind her back was properly admitted because it showed the considerable pain inflicted upon the victim by the defendant (C) holding that the injury was inflicted by the defendant when it occurred while the defendant applied force directly to the victims person (D) holding that the injury was inflicted by the defendant when it occurred as a result of the defendants combative conduct (E) holding that the injury was not inflicted by the defendant when it may have resulted from the actions ie the headbutt of the victim himself

(E)