§77o. Liability of controlling persons

Every person who, by or through stock ownership, agency, or otherwise, or who, pursuant to or in connection with an agreement or understanding with one or more other persons by or through stock ownership, agency, or otherwise, controls any person liable under sections 77k or 77l of this title, shall also be liable jointly and severally with and to the same extent as such controlled person to any person to whom such controlled person is liable, unless the controlling person had no knowledge of or reasonable ground to believe in the existence of the facts by reason of which the liability of the controlled person is alleged to exist.

(May 27, 1933, ch. 38, title I, §15, 48 Stat. 84 ; June 6, 1934, ch. 404, title II, §208, 48 Stat. 908 .)

Amendments

1934-Act June 6, 1934, exempted from liability controlling persons having no knowledge or reasonable grounds for belief.