Hugh Gibson is suing Simpson & Sloan, CPAs, to recover losses incurred in connection with Gibson's transactions in Zebra Corporation securities. Zebra's annual Form 10-K report contained material false and misleading statements in the financial statements audited by Simpson & Sloan. To recover under the Securities Exchange Act of 1934, Gibson must, among other things, establish that
He relied upon the financial statements in his decision to purchase or sell Zebra securities.