Problem

Since the Ernst & Ernst v. Hochfelder court decision, plaintiffs suing for damages und...

Since the Ernst & Ernst v. Hochfelder court decision, plaintiffs suing for damages under Rule 10b-5 must prove

A. The financial statements contained a material misstatement.

B. The reliance on the materially misstated financial statements caused the damages and loss.

C. Ordinary negligence on the part of auditors.

D. Scienter on the part of auditors.

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