If a lawyer were being held liable for a misstatement in a registration statement, her defense(s) would be:

Question

Quizplus · Accepted Answer

Option (b) is correct because lawyers can avoid liability for misstatements in registration statements if they have reasonable grounds to believe and actually believe that the information is accurate. Option (c) is also correct because the lawyer may only be liable for the portion of the registration statement that contains the misstatement, not the entire statement. Option (a) is not valid unless following instructions led to a misstatement of fact, and even then, lawyers are not excused from liability. Therefore, the best choice is (E), which includes both (b) and (c).

If a Lawyer Were Being Held Liable for a Misstatement