jail may be a stretch but, there are repercussions. Agreed, suspension in trading is one of them.
LIABILITY FOR MISLEADING STATEMENTS
SEC. 18. (a) Any person who shall make or cause to be made
any statement in any application, report, or document filed pursuant
to this title or any rule or regulation thereunder or any undertaking
contained in a registration statement as provided in subsection
(d) of section 15 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
285 SECURITIES EXCHANGE ACT OF 1934 Sec. 19
suit, and assess reasonable costs, including reasonable attorneys’
fees, against either party litigant.
(b) 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) 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.
(June 6, 1934, ch. 404, title I, Sec. 18, 48 Stat. 897; May 27, 1936,
ch. 462, Sec. 5, 49 Stat. 1379.)
REGISTRATION,
