The due diligence defense generally requires the defendant to show that he had reasonable grounds to believe and did believe that there were no untrue statements or material omissions in a registration statement.

Question

Quizplus · Accepted Answer

This statement accurately describes the due diligence defense. The defendant must demonstrate that they made a reasonable effort to investigate the accuracy and completeness of a registration statement before relying on it, and that they had a good faith belief that there were no false or misleading statements or omissions.

The Due Diligence Defense Generally Requires the Defendant to Show