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Matthew Decides to Invest in the Stock of a Television

Question 57

Multiple Choice

Matthew decides to invest in the stock of a television production company after he reads Edgar's audit, which includes a known falsity as to the value of numerous worthless securities held as corporate assets. If Matthew sues Edgar, he will be entitled to:


A) nothing, in a majority of states, since the class of foreseen users of the audit contract does not include potential investors and the general public.
B) compensatory damages, in a majority of states, if he is a foreseen user of the audit.
C) nominal damages only.
D) rescission of his purchase contract.

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