Who may be held liable for damages under the right of action for damages?

Who may be held liable for damages under the right of action for damages?

• A. Only the issuer of the securities
• B. Experts who consented to the inclusion of their reports in the prospectus
• C. The general public
• D. Financial advisors assisting in sales

Answer: (B)

The answer highlights the importance of accountability in the financial sector. When securities are offered to the public, any expert who consents to the inclusion of their reports in a prospectus takes on a level of responsibility for the accuracy and truthfulness of the information provided. This is significant because if there are misrepresentations or omissions that lead to investor losses, those experts can be held liable alongside the issuer for damages. This encourages thorough due diligence and integrity in the reporting process.

In contrast, the other choices do not align with the concept of liability in this context. The issuer of the securities is certainly a key party, but the question specifically points to those who may be individually liable for damages. The general public, while affected by the offering, does not have the same liability under this legal framework. Financial advisors assisting in sales may have responsibilities, yet their liability varies depending on the extent of their involvement and the nature of their advice, making them not universally liable in the same manner as the experts cited in the correct answer.