4-36 After Commuter Airlines was forced into bankruptcy, the company's stockholders brought suit against Thomas & Ross, the company's independent auditors. Three independent assumptions concerning this litigation are listed below: a) Commuter Airlines is not under SECjurisdiction. The plaintiff S suit is brought under common law in a state court that adheres to the Ultramares doctrine of auditors ' liability. b) Commuter Airlines had recently issued its publicly held securities. The stockholders' suit is brought in federal court under the Securities Act of 1933. c) Commuter Airlines is under SEC jurisdiction. The stockholders' suit is brought in federal court alleging violations of Sections 18(a) and 10(b) of the Securities Exchange Act of 1934.