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The Truth About Youth is the third film version of Henry V. Esmond's play, When We Were Twenty-One. Richard Dane (David Manners) is turning twenty-one, and his guardian, Dick Carewe (Conway Tearle) has arranged a nice surprise party for him. Unfortunately, Richard (nicknamed "Imp") never shows up for the party, as he is celebrating in his own wild and free way. This includes visiting a nightclub where the seductive Kara (Myrna Loy) holds forth. Kara has a habit of toying with the affections of young men until she gets bored with them -- which is usually when their money runs out. Not knowing that Richard has no money, Kara quickly becomes involved with him. This does not sit well with Carewe, who hopes to arrange a marriage between his Richard and the sweet, simple Phyllis (Loretta Young), daughter of his housekeeper. Unbeknownst to Carewe, however, Phyllis is in love with him, despite the fact that he is much older than she. Matters become complicated when Richard marries Kara, only to be thrown out by her when she discovers his true financial status. Carewe continues his efforts to bring Richard and Phyllis together, but Phyllis finally makes her true feelings known, and she and Carewe finally get together.