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Unformatted text preview: reliance on plaintiff only f/s materially misstated - Burden of proof on defendant (audit firm) 1934 Act - requires the 10- Qs and 10-Ks. If one is materially misstated, case can be filed Rule 10b-5: Fraud Can be found guilty under state and federal laws Defenses 1) Lack of duty to perform 2) Non-negligent performance 3) Contributory negligence 4) Absence of causal connection Defenses 1) Non-negligent performance Defenses 1) Non-negligent performance 2) Lack of duty 3) Absence of causal connection AUDITORS LEGAL LIABILITY...
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- Spring '10