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A divided 3rd Circuit ruled that under the Securities Exchange Act of 1934, securities purchasers who agree not to rely on sellers' representations may still prevail in suits against sellers for alleged misrepresentations or omissions. Signing non-reliance clauses could go to whether a party reasonably relied on a seller's representations, the court said, but wouldn't in every case provide immunity from fraud liability for defendants.
April 18, 2003 at 12:00 AM
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The original version of this story was published on Law.Com
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