Liability

Question 1

as a defendant, to whom is the due diligence defense available to?

Answer 1

any party except the issuer

Question 2

the scale of liability under section 11 depends on what?

Answer 2

the type of defendant

Question 3

which party defendant has the highest standards to perform due diligence?

Answer 3

top manager’s of the issuer

Question 4

when does a company become liable for a misstatement in a RS?

Answer 4

on the effective date of the registration

Question 5

under section 11, what is the highest amount a person can recover in a law suit?

Answer 5

no higher than the price at which the security was offered to the public