Answer:
This statement is false.
Step-by-step explanation:
While reliance is an element of a securities fraud claim, a plaintiff may also establish the reliance element by showing that the misrepresentation or omission was material and that the market as a whole relied on it. This is known as the "fraud-on-the-market" theory, which was established in Basic Inc. v. Levinson, 485 U.S. 224 (1988).