Dougal,an accountant,prepares for Econo Enterprise,Inc.,a financial statement that omits a material fact. The statement is included in Econo's registration statement with the Securities and Exchange Commission. Felicia,who relies the statement,and Graham,who does not,each buy Econo stock. Under Section 11 of the Securities Act of 1933,Dougal may be liable to

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Section 11 of the Securities Act of 1933 imposes strict liability on anyone who prepares or certifies a registration statement containing a material misstatement or omission. Both Felicia and Graham are potential plaintiffs who could sue for damages. Therefore, Dougal may be liable to both of them.

Dougal,an Accountant,prepares for Econo Enterprise,Inc