Quin, an accountant, prepares for Reddy, Inc., a financial state?ment that omits a material fact. The statement is included in Reddy's registration statement with the Securities and Exchange Commission. Timor, who reads the statement, and Ubi, who does not, each buy Reddy stock. Under Section 11 of the Securities Act of 1933, Quin may be liable to

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Section 11 of the Securities Act of 1933 provides for strict liability for material misstatements or omissions in a registration statement filed with the SEC. If Quin, an accountant, prepares a financial statement for Reddy, Inc., that omits a material fact and it is included in Reddy's registration statement with the SEC, Quin may be liable to both Timor and Ubi who bought Reddy stock. It doesn't matter if Ubi read the statement or not.

Quin, an Accountant, Prepares for Reddy, Inc