In a lawsuit against the auditor under the Securities Exchange Act of 1934, the investors proved that the auditor committed knowing fraud and that he had scienter. The auditor can be made to pay only part of the $400,000,000 (the proportion that he is responsible for).
a. True, because this is not sufficient to impose joint/several liability.
b. False, because this is sufficient to impose joint/several liability.
c. Not enough information to determine the answer.