Recovery of damages under Rule 10b-5 requires proof of:
A) reliance on a misstatement or omission.
B) materiality.
C) connection with the purchase or sale of a security .
D) All of these are required for recovery of damages.

Question

Quizplus · Accepted Answer

Rule 10b-5, promulgated under the Securities Exchange Act of 1934, is a key provision used to address securities fraud. For a plaintiff to recover damages under Rule 10b-5, they must prove reliance on a misstatement or omission, the materiality of the misstatement or omission, and a connection with the purchase or sale of a security. Therefore, all of these elements (A, B, and C) are required for recovery of damages.

Recovery of Damages Under Rule 10b-5 Requires Proof Of