Opinion ID: 1760157
Heading Depth: 1
Heading Rank: 5

Heading: texas securities act (tsa)

Text: The jury also found INA liable as an aider under the TSA. Texas Revised Civil Statute Article 581-33 F(2) imposes joint and several liability on any person who directly or indirectly with intent to deceive or defraud or with reckless disregard for the truth or the law materially aids a seller, buyer, or issuer of a security. TEX.REV.CIV. STAT. art. 581-33 F(2). The trial court instructed the jury that for aider liability to attach, the seller had to be liable for a violation of the TSA and INA had to have been aware of the violation but had to have recklessly disregarded the fact of the violation. There is no evidence that INA was aware that Commonwealth, Ace, and Gunnels violated the TSA in the solicitation and sale of the Overlord investments. On the contrary, prior to approving the Overlord programs for bonding, INA received two opinion letters from independent counsel stating that there existed no material misrepresentations or omissions in the Overlord PPMs. The evidence that INA knew of the Meatte injunction is no evidence that INA knew that it was still in effect or that the failure to disclose the Meatte injunction constituted a TSA violation.