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practice or course of business that operates or would operate as a | | fraud or deceit on the other person is liable to the other person. | | An action under this subsection is governed by the following. |
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| | | A.__The person defrauded may maintain an action to recover | | the consideration paid for the advice and the amount of any | | actual damages caused by the fraudulent conduct, interest at | | the legal rate of interest from the date of the fraudulent | | conduct, costs and reasonable attorney's fees determined by | | the court, less the amount of any income received as a | | result of the fraudulent conduct. |
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| | | B.__This subsection does not apply to a broker-dealer or its | | agents if the investment advice provided is solely | | incidental to transacting business as a broker-dealer and no | | special compensation is received for the investment advice. |
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| | | 7.__Joint and several liability.__The following persons are | | liable jointly and severally with and to the same extent as | | persons liable under subsections 2 to 6: |
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| | | A.__A person that directly or indirectly controls a person | | liable under subsections 2 to 6, unless the controlling | | person sustains the burden of proof that the person did not | | know and, in the exercise of reasonable care, could not have | | known of the existence of conduct by reason of which the | | liability is alleged to exist; |
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| | | B.__An individual who is a managing partner, executive | | officer or director of a person liable under subsections 2 | | to 6, including an individual having a similar status or | | performing similar functions, unless the individual sustains | | the burden of proof that the individual did not know and, in | | the exercise of reasonable care, could not have known of the | | existence of conduct by reason of which the liability is | | alleged to exist; |
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| | | C.__An individual who is an employee of or associated with a | | person liable under subsections 2 to 6 and who materially | | aids the conduct giving rise to the liability, unless the | | individual sustains the burden of proof that the individual | | did not know and, in the exercise of reasonable care, could | | not have known of the existence of conduct by reason of | | which the liability is alleged to exist; and |
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| | | D.__A person that is a broker-dealer, agent, investment adviser | | or investment adviser representative that materially aids the | | conduct giving rise to the liability under subsections 2 to 6, | | unless the person sustains the burden of |
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