If a plaintiff is successful in proving that an auditor has violated Section 10(b)of the 1934 Act,the auditor has:
A) primary liability.
B) secondary liability.
C) contingent liability.
D) rebuttable liability.

Question

Quizplus · Accepted Answer

If a plaintiff successfully proves that an auditor has violated Section 10(b) of the 1934 Act, the auditor has primary liability. This means that the auditor is directly responsible for the damages caused to the plaintiff as a result of the violation. The auditor cannot shift their liability to any other party and must pay the damages awarded to the plaintiff.

If a Plaintiff Is Successful in Proving That an Auditor