15 Aug 2018
ERIC MESERVE HOUGHTON v TIMOTHY ERNEST CORBETT SAUNDERS & ORS [2018] NZSC 74 [15 August 2018]
- Citation
- (2018) 15 TCLR 1
- Court
- Supreme Court
The Supreme Court held the FY04 revenue forecast in the Feltex prospectus was an "untrue statement" under s55(a) as at allotment (prospectus was misleading in context); investors may infer they invested on the faith of the publicly registered prospectus (market reliance does not require each investor to have read the prospectus); liability under s56 requires proof of loss "by reason of" the untrue statement and causation/quantum are to be determined at the stage 2 High Court hearing; the due diligence defence in s56(3)(c) is unavailable where the defendants knew a statement was untrue but reg…