15 U.S.C. § 78r : US Code - Section 78R: Liability for misleading statements
Search 15 U.S.C. § 78r : US Code - Section 78R: Liability for misleading statements
(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.
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.
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