Idaho State Statutes - Idaho Attorney Directory

(a) Securities litigation uniform standards
act. Enforcement of civil liability under this section is subject to the
securities litigation uniform standards act of 1998, as cited in section
30-14-103, Idaho Code.
(b) Liability of seller to purchaser. A person is liable to the purchaser
if the person sells a security in violation of section 30-14-301, Idaho Code,
or, by means of an untrue statement of a material fact or an omission to state
a material fact necessary in order to make the statement made, in light of the
circumstances under which it is made, not misleading, the purchaser not
knowing the untruth or omission and the seller not sustaining the burden of
proof that the seller did not know and, in the exercise of reasonable care,
could not have known of the untruth or omission. An action under this
subsection is governed by the following:
(1) The purchaser may maintain an action to recover the consideration
paid for the security, less the amount of any income received on the
security, and interest at the annual rate of interest set forth in section
28-22-104(2), Idaho Code, from the date of the purchase, costs, and
reasonable attorneys' fees determined by the court, upon the tender of the
security, or for actual damages as provided in subsection (b)(3) of this
section.
(2) The tender referred to in subsection (b)(1) of this section may be
made any time before entry of judgment. Tender requires only notice in a
record of ownership of the security and willingness to exchange the
security for the amount specified. A purchaser that no longer owns the
security may recover actual damages as provided in subsection (b)(3) of
this section.
(3) Actual damages in an action arising under this subsection are the
amount that would be recoverable upon a tender less the value of the
security when the purchaser disposed of it, and interest at the annual
rate of interest set forth in section 28-22-104(2), Idaho Code, from the
date of the purchase, costs, and reasonable attorneys' fees determined by
the court.
(c) Liability of purchaser to seller. A person is liable to the seller if
the person buys a security by means of an untrue statement of a material fact
or omission to state a material fact necessary in order to make the statement
made, in light of the circumstances under which it is made, not misleading,
the seller not knowing of the untruth or omission, and the purchaser not
sustaining the burden of proof that the purchaser did not know, and in the
exercise of reasonable care, could not have known of the untruth or omission.
An action under this subsection is governed by the following:
(1) The seller may maintain an action to recover the security, and any
income received on the security, costs, and reasonable attorneys' fees
determined by the court, upon the tender of the purchase price, or for
actual damages as provided in subsection (c)(3) of this section.
(2) The tender referred to in subsection (c)(1) of this section may be
made any time before entry of judgment. Tender requires only notice in a
record of the present ability to pay the amount tendered and willingness
to take delivery of the security for the amount specified. If the
purchaser no longer owns the security, the seller may recover actual
damages as provided in subsection (c)(3) of this section.
(3) Actual damages in an action arising under this subsection are the
difference between the price at which the security was sold and the value
the security would have had at the time of the sale in the absence of the
purchaser's conduct causing liability, and at the annual rate of interest
set forth in section 28-22-104(2), Idaho Code, from the date of the sale
of the security, costs, and reasonable attorneys' fees determined by the
court.
(d) Liability of unregistered broker-dealer and agent. A person acting as
a broker-dealer or agent that sells or buys a security in violation of section
30-14-401(a), 30-14-402(a) or 30-14-506, Idaho Code, is liable to the
customer. The customer, if a purchaser, may maintain an action for recovery of
actual damages as specified in subsections (b)(1) through (3) of this section,
or, if a seller, for a remedy as specified in subsections (c)(1) through (3)
of this section.
(e) Liability of unregistered investment adviser and investment adviser
representative. A person acting as an investment adviser or investment adviser
representative that provides investment advice for compensation in violation
of section 30-14-403(a), 30-14-404(a) or 30-14-506, Idaho Code, is liable to
the client. The client may maintain an action to recover the consideration
paid for the advice, interest at the annual rate of interest set forth in
section 28-22-104(2), Idaho Code, from the date of payment, costs, and
reasonable attorneys' fees determined by the court.
(f) Liability for investment advice. A person that receives directly or
indirectly any consideration for providing investment advice to another person
and that employs a device, scheme or artifice to defraud the other person or
engages in an act, practice, or course of business that operates or would
operate as a fraud or deceit on the other person, is liable to the other
person. An action under this subsection is governed by the following:
(1) The person defrauded may maintain an action to recover the
consideration paid for the advice and the amount of any actual damages
caused by the fraudulent conduct, interest at the annual rate of interest
set forth in section 28-22-104(2), Idaho Code, from the date of the
fraudulent conduct, costs, and reasonable attorneys' fees determined by
the court, less the amount of any income received as a result of the
fraudulent conduct.
(2) This subsection does not apply to a broker-dealer or its agents if
the investment advice provided is solely incidental to transacting
business as a broker-dealer and no special compensation is received for
the investment advice.
(g) Joint and several liability. The following persons are liable jointly
and severally with and to the same extent as persons liable under subsections
(b) through (f) of this section:
(1) A person that directly or indirectly controls a person liable under
subsections (b) through (f) of this section, unless the controlling person
sustains the burden of proof that the person did not know, and in the
exercise of reasonable care could not have known, of the existence of
conduct by reason of which the liability is alleged to exist;
(2) An individual who is a managing partner, executive officer, or
director of a person liable under subsections (b) through (f) of this
section, including an individual having a similar status or performing
similar functions, unless the individual sustains the burden of proof that
the individual did not know and, in the exercise of reasonable care could
not have known, of the existence of conduct by reason of which the
liability is alleged to exist;
(3) An individual who is an employee of or associated with a person
liable under subsections (b) through (f) of this section and who
materially aids the conduct giving rise to the liability, unless the
individual sustains the burden of proof that the individual did not know
and, in the exercise of reasonable care could not have known, of the
existence of conduct by reason of which the liability is alleged to exist;
and
(4) A person that is a broker-dealer, agent, investment adviser, or
investment adviser representative that materially aids the conduct giving
rise to the liability under subsections (b) through (f) of this section,
unless the person sustains the burden of proof that the person did not
know and, in the exercise of reasonable care could not have known, of the
existence of conduct by reason of which liability is alleged to exist.
(h) Right of contribution. A person liable under this section has a right
of contribution as in cases of contract against any other person liable under
this section for the same conduct.
(i) Survival of cause of action. A cause of action under this section
survives the death of an individual who might have been a plaintiff or
defendant.
(j) Statute of limitations. A person may not obtain relief:
(1) Under subsection (b) of this section for violation of section
30-14-301, Idaho Code, or under subsection (d) or (e) of this section,
unless the action is instituted within one (1) year after the violation
occurred; or
(2) Under subsection (b) of this section, other than for violation of
section 30-14-301, Idaho Code, or under subsection (c) or (f) of this
section, unless the action is instituted within the earlier of two (2)
years after discovery of the facts constituting the violation or five (5)
years after the violation.
(k) No enforcement of violative contract. A person that has made, or has
engaged in the performance of, a contract in violation of this chapter or a
rule adopted or an order issued under this chapter, or that has acquired a
purported right under the contract with knowledge of conduct by reason of
which its making or performance was in violation of this chapter, may not base
an action on the contract.
(l) No contractual waiver. A condition, stipulation, or provision binding
a person purchasing or selling a security or receiving investment advice to
waive compliance with this chapter or a rule adopted or an order issued under
this chapter is void.
(m) Survival of other rights or remedies. The rights and remedies
provided by this chapter are in addition to any other rights or remedies that
may exist, but this chapter does not create a cause of action not specified in
this section or section 30-14-411(e), Idaho Code.

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