Plaintiffs must prove that the accountants behaved intentionally or recklessly in a lawsuit based on Section 10(b)and Rule 10b-5 of the Securities Exchange Act of 1934.

Question

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This statement is true. To succeed in a lawsuit based on Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, plaintiffs must show that the accountants acted with intent or recklessness in their conduct. Mere negligence or mistakes are not sufficient to establish a claim under these provisions.

Plaintiffs Must Prove That the Accountants Behaved Intentionally or Recklessly