The plaintiff must prove privity of contract to recover monetary damages under Section 11(a)of the Securities Act of 1933.

Question

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Under Section 11(a) of the Securities Act of 1933, a plaintiff does not need to prove privity of contract to recover monetary damages for misstatements or omissions in a registration statement. This section allows for a broader range of plaintiffs, including any person who acquires the security, not just those in direct contractual relationship with the issuer.

The Plaintiff Must Prove Privity of Contract to Recover Monetary