Assume that Flywell Ltd has issued and lodged a prospectus with ASIC. The prospectus contains a totally unrealistic profit forecast made by the directors and supported by a quote from an independent industry expert. Flywell Ltd's expansion was a disaster because market demand for domestic travel slumped unexpectedly soon after the prospectus timeframes closed. The investors have commenced legal action on the basis that the profit forecast statements in the prospectus were misleading or deceptive.

What are the rights and liabilities of theFlywell LtdCompany?