Definition: 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. You should write an incorrect option. Even though there exist multiple wrong answers, we only need a single wrong answer. There is a <HOLDING> token in the position of the citing text prompt where the holding statement was extracted.
Input: 25 N.Y.2d 112, 119, 302 N.Y.S.2d 799, 803, 250 N.E.2d 214 (1969)). The parties' briefs assume that New York law applies to plaintiffs' state law claims. Such "implied consent ... is sufficient to establish choice of law." Motorola Credit Corp. v. Uzan, 388 F.3d 39, 61 (2d Cir.2004) (citing Krumme v. WestPoint Stevens, Inc., 238 F.3d 133, 138 (2d Cir.2000)). 131 . E.g., Remington Rand Corp. v. Amsterdam-Rotterdam Bank, N.V., 68 F.3d 1478, 1483 (2d Cir.1995). 132 . E.g., Manela v. Garantia Banking, 5 F.Supp.2d 165, 178-79 (S.D.N.Y.1998). As with Rule 10b-5, knowledge or recklessness is sufficient to satisfy the scienter element for common law fraud. See, e.g., Suez Equity Investors, 250 F.3d at 104-05. 133 . E.g., Cont'l Ins. Co. v. Mercadante, 222 A.D. 181, 225 N.Y.S. 488 (1927) (<HOLDING>); In re WorldCom, Inc. Sec. Litig., No. 02 Civ.
Holding statements: (A) recognizing cause of action where plaintiffs allege fraud in inducing not the purchase of the bonds but their retention after purchase (B) holding that a claim arises from the purchase or sale of a security only if there is an allegation of fraud in the purchase sale or issuance of the instrument (C) holding that where purchaser had taken possession and paid part of the purchase price the statute of frauds did not bar enforcement of a purchase agreement (D) recognizing cause of action (E) recognizing the cause of action
Output:
holding that a claim arises from the purchase or sale of a security only if there is an allegation of fraud in the purchase sale or issuance of the instrument