What Must a Plaintiff Do in Order to Recover Damages

question 46

Multiple Choice

What must a plaintiff do in order to recover damages under the Securities Act of 1933 after purchasing a security covered by a registration statement containing false information or missing information?

• A) A plaintiff must prove that they relied to their detriment on the registration statement.
• B) A plaintiff must prove that they were in privity of contract with the accountant at issue.
• C) The plaintiff must establish reliance on the document and privity of contract with the accountant.
• D) The plaintiff must establish reliance on the financial statement, privity with the accountant, and also that the securities were purchased within the previous 18 months.
• E) The plaintiff does not have to prove reliance on the financial statement or establish privity.

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Definitions:

Tendonitis

Inflammation of a tendon, typically caused by overuse, leading to pain and discomfort in the affected area.

Sternocleidomastoid Muscles

The paired muscles in the neck that facilitate head movement and play a role in respiration; they run from the sternum and clavicle to the mastoid process of the temporal bone.

Torticollis

A condition also known as 'twisted neck,' where the head is tilted due to tightness or shortness of the neck muscles on one side.

Elbow Joint

A hinge joint that connects the forearm to the upper arm, allowing for the flexion and extension of the forearm.