Wilson bought Zimmer Corp.common stock in an offering registered under the Securities Act of 1933.Baldridge & Co. ,CPAs,gave an unqualified opinion on Zimmer's financial statements that were included in the registration statement filed with the SEC.Wilson sued Baldridge under the provisions of the 1933 Act that deal with omission of facts required to be in the registration statement.Wilson must prove that:

Question

Quizplus · Accepted Answer

Under the Securities Act of 1933, to sue an accountant for a material misstatement in the financial statements included in a registration statement, the plaintiff must prove there was a material misstatement. There is no need to prove fraud, reliance on the accountant's opinion, or a direct relationship (privity) with the accountant.

Wilson Bought Zimmer Corp