Under common law in states using the Ultramares rule,third-party users must prove gross negligence or fraud unless they are able to get themselves classified as third-party beneficiaries of the financial statements.

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Under the Ultramares rule, third-party users cannot sue for negligence but can sue for fraud or gross negligence. However, if they can prove that they were intended beneficiaries of the financial statements, they can sue for any negligence.

Under Common Law in States Using the Ultramares Rule,third-Party Users