An accountant's liability under the Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 re?quires privity of contract.

Question

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Privity of contract is not required for an accountant's liability under Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. This means that the accountant can be held liable for fraudulently misrepresenting or omitting material information even if they did not directly contract with the investor.

An Accountant's Liability Under the Section 10(b) and Rule 10b-5