Is proof of reliance required to sue accountants under Section 10-b of 1934 Act?

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February 27, 2016 at 5:23 am #200412

OnToTheNextOne
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I had always assumed that it was not needed but now I have run across a Wiley TBS that says otherwise

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February 27, 2016 at 7:05 am #759842

Bnots
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It is the 1933 Securities Act that doesn't require reliance.

The 1934 Securities Exchange Act is much more favorable to accountants. Not only does it require reliance, but the plaintiff must prove scienter (the intent to act wrongly) when alleging gross negligence or fraud.
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