Independent auditors and CPA firms have long been the target of plaintiffs’ attorneys seeking to impose liability under federal securities laws. But those auditors may have a new shield to deflect frivolous claims. Indeed, courts in a growing number of jurisdictions have required that plaintiffs asserting a section 11 claim under the Securities Act of 1933 must plead both objective and subjective falsity to properly allege a misstated “opinion” statement with respect to financial-statement line items.
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