Which of the following elements do NOT have to be proved once a plaintiff has established the ability to sue under rule 10b-5?
A) Material, factual misrepresentation or omission
B) Error by auditor led to plaintiffs' loss
C) Reliance by the plaintiff on the financial statements
D) Damages suffered by plaintiff as a result of reliance on the financial statements

Question

Quizplus · Accepted Answer

Once a plaintiff has established the ability to sue under rule 10b-5, material, factual misrepresentation or omission, reliance by the plaintiff on the financial statements, and damages suffered by plaintiff as a result of reliance on the financial statements must be proved. However, error by auditor leading to plaintiff's loss is not a necessary element to prove under rule 10b-5.

Which of the Following Elements Do NOT Have to Be