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Unformatted text preview: Company itself Shareholders and others who have losses. CPA is Liable for Ordinary or gross negligence Gross negligence (source of most exceptions) Exceptions: Liable to Third Parties for ordinary negligence : 3 Approaches(different courts have different rules) Ultramares (Known User) Known Purpose and Known User Restatement (Foreseen User) Known Purpose Rosenblum (Foreseeable User) Foreseeable user may recover. Insight 27: CPA statute liability 33 Securities Act 34 Securities Exchange Act Who may sue? Purchasers of registered securities Security purchasers and sellers SEC form S-1 10K, 10Q CPA is Liable for Lack of due diligence Section 10Existence of scienter Section 18Lack of good faith...
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