acc562 week 9 discussion 2

acc562 week 9 discussion 2 - Case1754 Based on your...

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Case “17-54”  Based on your analysis of the “17-54” case, respond to each of the discussion points: Discuss the merits of the actions commenced against Crea by the purchasers of the common stock and by Safe, indicating the likely outcomes and the reasoning behind each outcome. How would your answer be different if the client filed a registration statement and the purchasers of the common stock were able to bring suit under the 1933 Act? If Dark (the client) sued Crea under common law, indicate the likely outcome and its rationale. Discuss the merits of the actions commenced against Crea by the purchasers of the common stock and by Safe, indicating the likely outcomes and the reasoning behind each outcome. In this case, Crea is not liable for the damages incurred in the acquisition of common stock through a registration statement under the 1934 Act. The liability, which purchasers need to prove, can be hard to be proved. Under Section 10 (b) and Rule 10b-5of the 1934 Act, an auditor is only liable when they intentionally or recklessly make a misstatement or omission of a material fact that the purchasers rely on in purchasing or selling a security. In order to establish a
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This note was uploaded on 02/01/2012 for the course ACCT ACC562 taught by Professor Williamguy during the Fall '10 term at Strayer.

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acc562 week 9 discussion 2 - Case1754 Based on your...

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