This is an interesting subject that beckons some discussion. The heart of ASC's case against PBEC was a net that was cast stating that PBEC "ought to have known that the market for their shares was being manipulated" way up there in Alberta. It's akin to a vertical liability situation involving a manufactured product, only it's applied by the GAAS. It is, however, definitely broader than the rules applied under vertical liability in the mfg. arena, and virtually impossible for a company to disprove on their own behalf. For example it is simple to go from the end user to the retailer and on to the mfg to quickly determine where the product originated. Conversely it is very difficult to determine how far up the line knowledge of a misdeed (Skymark's activities) was known.
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