Boyd Knight v Purdue

After losing their investment of $750,000 in Burbery Mortgage Finance & Savings Ltd, the plaintiffs sued the auditors to recover their investment, on the basis that without their audit certificate, that under the Securities Act, there would not have been a prospectus, and so no investment in the first place.

In the High Court, they won their claim, albeit reduced by 50% due to contributory negligence due to the fact that it was a speculative investment in the first place.

The auditors appealed.

The Court of Appeal reversed the High Courts award of damages, on the basis that the plaintiff's had admitted they had not read the advert as a "true and fair view" of the accounts.