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A Group of Investors Brings a Class Action Lawsuit Against

question 6

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A group of investors brings a class action lawsuit against the Z & R Accounting Firm under Section 10b and Rule 10b-5 of the 1934 Securities Act. Angela, an accountant with the firm, had done an audit of the Pennymart Inc. books. The audit failed to disclose that Orrin, the president of Pennymart, had stolen large amounts of cash from the firm. Pennymart eventually filed for bankruptcy as a result of the thefts. What is the likely result of the suit?


Definitions:

Conscientiousness

A personality trait characterized by thoroughness, diligence, and the carefulness of an individual.

Neuroticism

A personality trait characterized by tendencies toward anxiety, moodiness, worry, envy, and jealousy.

Agreeableness

A personality trait characterized by warmth, kindness, and a tendency to cooperate and seek harmony in social interactions.

Openness

A personality trait that involves the appreciation for new experiences, creativity, and a willingness to explore novel ideas.

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