When bringing suit against auditors under section 10(b)of the Securities Exchange Act of 1934,plaintiffs must allege and prove:
A)The financial statements in the offering registration filing contained a material misstatement.
B)Auditors were aware of material misstatements in the financial statements.
C)Auditors were guilty of ordinary negligence and failed to discover material misstatements in the financial statements.
D)The plaintiffs purchased the specific securities through a public offering and thus have a right to sue.

Question

Quizplus · Accepted Answer

To bring suit against auditors under section 10(b) of the Securities Exchange Act of 1934, plaintiffs must allege and prove that the auditors were aware of material misstatements in the financial statements. The other options listed do not fully meet the necessary requirements for bringing such a suit.

When Bringing Suit Against Auditors Under Section 10(b)of the Securities