Legal Environment 5th Edition by Jeffrey Beatty,Susan Samuelson

تمرين 4

Refco Inc. failed to disclose in SEC filings that millions of dollars of its accounts receivables were uncollectible. Two months after its IPO, the company went bankrupt. Shareholders filed suit against the company's law firm, alleging that it was liable under Section 10b) for drafting Refco's SEC filings that contained these material omissions. Is the law firm liable? Should it be? Is this a stronger or weaker case than Stoneridge?