5 4 points Save Answer Joseph invested in the securities of the LMNO Corporation (LMNO). He lost a great deal of money on those securities after LMNO's president admitted that financial statements about the profitability of LMNO had been materially exaggerated. Cyrus CPA had audited those statements and had issued an unqualified opinion that they complied with GAAS and GAAP. Joseph has sued Andy using Section 10(b) of the Securities Exchange Act of 1934 as the legal basis of his suit. To succeed, Joseph must prove that: CC acted with scienter. Joseph was in privity of contract with LMNO or CC. CC acted negligently. CC's actions have a connection with intrastate commerce