Where it is alleged that defendant-corporation fraudulently recognized revenue in violation of generally accepted accounting principles, the "bright line" test is the appropriate standard to apply to determine primary liability under � 10(b); applying that test, the SEC's primary liability claim against defendant-finance officer must fail since the misstatement of revenue is not alleged to have been made by her and was not directly attributed to her.
April 18, 2005 at 12:00 AM
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