Sims, an accountant, prepares for Taco Corporation a financial statement that omits a material fact. The financial statement is included in Taco's registration statement, which Uri reads. Uri buys Taco stock. Under Section 11 of the Securities Act of 1933, for Sims to be liable for the omission, Uri must show that he

Question

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Under Section 11 of the Securities Act of 1933, a plaintiff (like Uri) does not need to prove reliance on the omission or misstatement in the registration statement to hold the accountant (Sims) liable. The plaintiff must only show that there was a material omission or misstatement and that they suffered a loss on the stock. Knowledge about the omission before purchase or being a sophisticated investor is irrelevant to establishing liability under Section 11.

Sims, an Accountant, Prepares for Taco Corporation a Financial Statement