Where there has been a finding of liability for failure to make timely disclosure of a material change in an issuer's business, the liability award will be capped unless the defendant knowingly participated in the misrepresentation or failure to disclose.

Question

Quizplus · Accepted Answer

This statement is true. The liability award for failure to make timely disclosure of a material change in an issuer's business will be capped unless the defendant knowingly participated in the misrepresentation or failure to disclose. This is specified in securities laws and regulations in certain jurisdictions.

Where There Has Been a Finding of Liability for Failure