To establish a "due diligence" defense,the defendant must prove that after reasonable investigation,he or she had reasonable grounds to believe and did believe that,at the time the registration statement became effective,the statements contained therein were true and there was not omission of material facts.

Question

Quizplus · Accepted Answer

This is the correct definition of a "due diligence" defense. The defendant must have conducted a reasonable investigation and believed the statements in the registration statement were true at the time it became effective.

To Establish a "Due Diligence" Defense,the Defendant Must Prove That