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Code · U.S. Code · Title 15 - COMMERCE AND TRADE · CHAPTER 2B— SECURITIES EXCHANGES · § 78r

§ 78r. Liability for misleading statements

377 words·~2 min read·/usc/title-15/section-78r

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Persons liable; persons entitled to recover; defense of good faith; suit at law or in equity; costs, etc. Any person who shall make or cause to be made any statement in any application, report, or document filed pursuant to this chapter or any rule or regulation thereunder or any undertaking contained in a registration statement as provided in subsection
(d)of section 78o of this title, which statement was at the time and in the light of the circumstances under which it was made false or misleading with respect to any material fact, shall be liable to any person (not knowing that such statement was false or misleading) who, in reliance upon such statement, shall have purchased or sold a security at a price which was affected by such statement, for damages caused by such reliance, unless the person sued shall prove that he acted in good faith and had no knowledge that such statement was false or misleading. A person seeking to enforce such liability may sue at law or in equity in any court of competent jurisdiction. In any such suit the court may, in its discretion, require an undertaking for the payment of the costs of such suit, and assess reasonable costs, including reasonable attorneys’ fees, against either party litigant.
(b)Contribution Every person who becomes liable to make payment under this section may recover contribution as in cases of contract from any person who, if joined in the original suit, would have been liable to make the same payment.
(c)Period of limitations No action shall be maintained to enforce any liability created under this section unless brought within one year after the discovery of the facts constituting the cause of action and within three years after such cause of action accrued.
(June 6, 1934, ch. 404, title I, § 18, 48 Stat. 897; May 27, 1936, ch. 462, § 5, 49 Stat. 1379.)
Connections86 cite this · traces to 1
Cited by 86 sections · top 51
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4 references not yet in our index
  • June 6, 1934, ch. 404
  • 48 Stat. 897
  • May 27, 1936, ch. 462, § 5
  • 49 Stat. 1379
Citation graph
cites case law
§ 78r
Liability for misleading statements
Fed. Reg.×74
C.F.R.×8
Stat.×2
U.S.C.×2
ActJune 6, 1934, ch. 404
Stat.48 Stat. 897
ActMay 27, 1936, ch. 462, § 5
Stat.49 Stat. 1379
Cites 5Cited by 86 across 4 sources
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