CITE

    15 USC Sec. 78r                                             01/08/2008

EXPCITE

    TITLE 15 - COMMERCE AND TRADE
    CHAPTER 2B - SECURITIES EXCHANGES

HEAD

    Sec. 78r. Liability for misleading statements

STATUTE

    (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.

SOURCE

    (June 6, 1934, ch. 404, title I, Sec. 18, 48 Stat. 897; May 27,
    1936, ch. 462, Sec. 5, 49 Stat. 1379.)

REFERENCES IN TEXT

      This chapter, referred to in subsec. (a), was in the original
    "this title". See References in Text note set out under section 78a
    of this title.

AMENDMENTS

      1936 - Subsec. (a). Act May 27, 1936, inserted "or any
    undertaking contained in a registration statement as provided in
    subsection (d) of section 78o of this title".