Which of the Following Has Contributed to a Decrease in Federal

question 35

Multiple Choice

Which of the following has contributed to a decrease in federal class actions involving audit firms as co-defendants over the last decade?

• A)Supreme Court decisions in Janus Capital Group,Inc. ,and Stoneridge Investment Partners.
• B)Federal restrictions on contingent fees for lawyers in lawsuits filed under the Securities Act of 1934.
• C)A growing expectations gap causing investors to view audit reports as insurance against losses.
• D)All of the above.

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Definitions:

Superseding Causes

Events that occur after a defendant's negligent act, breaking the causal connection between that act and the harm suffered, and relieving the defendant of liability.

Res Ipsa Loquitur

A legal doctrine that allows proof of negligence to be inferred from the mere fact that an accident occurred, if the accident is the kind that typically would not happen without negligence.

Proximate Cause

The extent to which, as a matter of policy, a defendant may be held liable for the consequences of his or her actions. In the majority of states, proximate cause requires that the plaintiff and the type of injury suffered by the plaintiff were foreseeable at the time of the accident. In the minority of states, proximate cause exists if the defendant’s actions led to the plaintiff’s harm.

Legal Cause

A legally sufficient reason to file a lawsuit, based on recognized legal principles.