Which of the following defenses may be raised by an accountant under Section 11 of the 1933 Securities Act?

Question

Quizplus · Accepted Answer

Under Section 11 of the 1933 Securities Act, an accountant (or any defendant) can raise the defense of due diligence to show that they had reasonable grounds to believe and did believe, at the time the registration statement became effective, that the statements therein were true and there was no omission of a material fact required to be stated or necessary to make the statements not misleading. Privity, or a direct contractual relationship with the plaintiff, is not a defense under Section 11.

Which of the Following Defenses May Be Raised by an Accountant