Taylor v. Perdition Minerals Group, Ltd.
Supreme Court of Kansas
766 P.2d 805 (1988)
Relevant factsFree
W.W. Taylor (plaintiff) purchased 400,000 shares of Perdition Minerals Group, Ltd. (defendant) after discussions with company director Henry Mulvihill, and later discovered the shares had never been registered. Taylor sued Perdition and all of its directors under the Kansas Securities Act for selling unregistered securities. The trial court ruled for every director except Mulvihill, and Taylor sought review in the Kansas Supreme Court.
IssueFree
Whether corporate directors can be held liable for the unregistered sale of securities absent proof that they could not reasonably have known the facts underlying the alleged violation.