Texas Government Code 4008.101 – Investment Adviser or Investment Adviser Representative Liability
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(a) An investment adviser or investment adviser representative who renders services as an investment adviser in violation of § 4004.052 or 4004.102(a) or an order under § 4007.102 or 4007.104 is liable to the purchaser, who may sue for damages in the amount of any consideration paid for the services.
(b) Except as provided by Subsection (c), an investment adviser or investment adviser representative who commits fraud or engages in a fraudulent practice in rendering services as an investment adviser is liable to the purchaser, who may sue for damages.
Terms Used In Texas Government Code 4008.101
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Fraud: Intentional deception resulting in injury to another.
(c) An investment adviser or investment adviser representative who in rendering services as an investment adviser makes an untrue statement of a material fact or omits to state a material fact necessary in order to make the statement made, in light of the circumstances under which the statement is made, not misleading is not liable under Subsection (b) if the adviser or representative proves:
(1) the purchaser knew of the truth or omission; or
(2) the adviser or representative did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.