STARK INDUSTRIES (SI) is looking to raise equity finance through the public stock exchange. Of the three directors, ROB Thrawn has been given the responsibility of compiling the company prospectus. Rob has written the prospectus using the technical language he feels is necessary for the sophisticated investors the company is looking to attract. He does not feel that a simplistic outline is necessary for inclusion into the prospectus. Additionally, SI did not perform well in the last year and, while not making a loss, its revenues shrank significantly. When Rob compiled the prospectus, he hired an expert to give her opinion on the growth prospects of the company in light of this. She suggested that, despite the last year's shrink, the following year would prove extremely profitable and so could say this in the prospectus. After the prospectus was issued and SI floated on the stock market, the company continued to perform poorly and eventually began making a loss. In addition to this, Rob noted within the prospectus that the figure for the previous year's earnings was incorrect and had been inflated in the prospectus by around E1 million. Rob has come to you for advice. He has asked you to advise him on the issues with the prospectus, his potential liability, the potential liability of the other directors and any sanctions that could be given by the FCA. He has also asked whether he would have any defences available to potential claims