Q. If the entity that issued the securities has filed a bankruptcy petition, can an investor still obtain a recovery?

A. Yes. Those who sold the securities may be held accountable. Additionally, those who “aided” the selling effort may be responsible for losses that have been sustained. However, more stringent standards may be applied when allegations are directed at an “aider.”

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Q. Can an investor obtain a recovery if the seller merely failed to provide certain information?

A. Yes. A material omission can cause a representation to be just as misleading as a statement that constitutes an outright falsity.

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Q. Can an investor successfully assert a securities law claim even if the seller did not maintain an intent to defraud?

A. Yes. The Texas Securities Act does not require proof of an intent to defraud. In that sense, it is much broader than federal securities law standards.

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Q. Is an investor required to file a pleading within a certain period of time?

A. Yes. Statutes of limitations are applicable to court proceedings. However, different statutes of limitations may be applied to the various claims that are made. Further, an analysis focusing on the point at which a given statute of limitations began to run may differ, depending on the nature of the claim that is asserted. To minimize potential problems, it may be prudent to act quickly.