Under section 11 of the Securities Act of 1933,a plaintiff suing for damages must prove
A) A privity relationship with auditors.
B) Reliance on the financial statements in registration statement.
C) Materially misstated financial statements caused the damages or loss.
D) Damages or loss from the purchase of securities.

Question

Quizplus · Accepted Answer

Under Section 11 of the Securities Act of 1933, a plaintiff must prove that they suffered damages or loss from the purchase of securities, but they do not need to prove reliance on the financial statements or a privity relationship with auditors.

Under Section 11 of the Securities Act of 1933,a Plaintiff