Opinion ID: 493289
Heading Depth: 3
Heading Rank: 2

Heading: The Restatement Standard1

Text: 9 This standard permits recovery for those who can be actually foreseen as parties who will and do rely upon the financial statements. Toro Co. v. Krouse, Kern & Co., 644 F.Supp. 986, 992 (N.D.Ind.1986) [hereinafter cited as Order]. In pertinent part, section 552 of the Restatement (Second) of Torts reads as follows: 10 (1) One who, in the course of his business, profession or employment, or in any other transaction in which he has a pecuniary interest, supplies false information for the guidance of others in their business transactions, is subject to liability for pecuniary loss caused to them by their justifiable reliance upon the information, if he fails to exercise reasonable care or competence in obtaining or communicating the information. 11 (2) Except as stated in Subsection (3), the liability stated in Subsection (1) is limited to loss suffered 12 (a) by the person or one of a limited group of persons for whose benefit and guidance he intends to supply the information or knows that the recipient intends to supply it; and 13 (b) through reliance upon it in a transaction that he intends the information to influence or knows that the recipient so intends or in a substantially similar transaction.