Civil liability under Section 11 is imposed on those who are negligent in not discovering fraud in their security offerings.

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Section 11 of the Securities Act of 1933 imposes civil liability on those who are negligent in not discovering fraud in their security offerings. This means that if a person fails to exercise reasonable care in investigating and disclosing information about a security offering, they may be held liable for any losses suffered by investors who rely on the fraudulent information.

Civil Liability Under Section 11 Is Imposed on Those Who