Section 11 Flashcards
1
Q
Section 11
A
Section 11 imposes strict liability on issues, underwriters and others from material statements or mission in a registration statement, allowing purchaser of Security in public offering to sue if the purchase was based on the defective statement.
2
Q
Due diligence defense
A
The due diligence defense protects individual from liability for false or missing facts in the registration statement. If they can prove the reason reasonably investigated believed it was true, and I had no reason to doubt.
Expert-defendant must demonstrate no facts, present or reason to doubt experts work.
Non-expert-defendant they concluded their own independent investigation
