Defendant, Alexander Grant, Co., contracted to perform accounting services for the GHP Corporation, for the purposes of preparing an audit for the 12-month period ending June 1, 2020. GHP provided Alexander with the financial information. Alexander completed the audit and delivered same to GHP. Subsequently, GHP submitted copies of this audit to Spherex Co., a manufacturer of spoked wheels for baby carriages, for the purposes of obtaining credit. Spherex, upon reliance of Alexanders audit, provided credit to GHP. Subsequently, GHP went bankrupt and Spherex suffered a loss in that its loan could not be repaid by GHP.

Spherex instituted a lawsuit against Alexander claiming violations of state law. Discuss the liability of Alexander:

1. Assuming Alexander acted fraudulently.
2. Assuming Alexander acted negligently applying the foreseeable plaintiff theory.
3. Assuming Alexander acted negligently applying the primary benefit theory.

Assume that Alexanders audit was prepared for the SEC in connection with a public offering. Discuss its liability if a person bought stock in this IPO and suffered a loss