LT A Wk 1 - against Doe on the count that Doe was negligent...

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Case 4-26 A. Will Peters prevail on his federal securities law claims? Peters will not prevail in this case since the facts did not show liability in the sale of registered securities or the liability for reports filed with the SEC. Since this stocks transaction involved interstate commerce, there is a chance that Peters might have a case with fraud, but he would have to show that there was fraud on the part of Doe, connecting it with the sale of a security. If this can be shown, than civil damage may be available to Peters
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Unformatted text preview: against Doe, on the count that Doe was negligent. B. Will Peters prevail on his state common law claims? Just as in the other case, Peters will not prevail based upon his state common law action as well. It shows that Doe was not in privity of contract with Peters; also it does not indicate that Doe was even aware that Peters would rely on their financial statements. It states that privity is required before an accountant can be held liable to users of the financial statement under common law or tort law....
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