San Francisco made major changes to the city tax code last year, making sure that big companies headquartered there paid taxes at a fair and equal rate to its residents. One month after the hike in taxes, San Francisco$$based social media startup Samovar held an IPO, releasing the shares of common stock at $$54.$ As part of the paperwork for filing the IPO, Samovar's accounting firm, Reed Fortier Rockwell, had to release a registration statement that listed "any known events or uncertainties" that could affect its future operating results. Reed Fortier's Registration Statement failed to note the fact that Samovar's effective tax rate was rising from $34$ percent to $41$ percent.

The tax reforms hit Samovar hard, and it was forced to reduce its next earnings guidance. Its stock took a dive and now hovers around $$14$ a share.

A group of shareholders have filed a class$-$action lawsuit against Samovar and Reed Fortier, claiming that their actions violate the Securities Act of $1933.$ Do you agree or disagree that their actions intentionally misled stockholders?