|
person. An action under this subsection is governed by the | following. |
|
| 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. |
|
| 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. |
|
| | 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: |
|
| 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; |
|
| 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; |
|
| 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 |
|
| 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 proof that the person | did not know and, in the exercise of |
|
|