In Reves v. Ernst and Young, the accounting firm had allegedly inflated the assets of a bankrupt cooperative that plaintiffs had invested in. The Court said that

Question

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The Court held that the plaintiffs' shares could be deemed "securities" within the meaning of federal securities acts. This means that Ernst and Young could be held liable for securities fraud under those acts. The other options (A and B) are incorrect as the Court did not exonerate Ernst and Young on the basis that the shares were not securities and did not find that Ernst and Young had no secondary liability for aiding and abetting.

In Reves V