Civil liability under Section 11 is imposed on issuers who are negligent in not discovering the fraud in their security offerings.

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Section 11 of the Securities Act of 1933 imposes civil liability on issuers who are negligent in not discovering the fraud in their security offerings. The section holds issuers responsible for the accuracy of the information contained in their registration statements and imposes liability for any material misstatements or omissions. Therefore, if an issuer fails to exercise reasonable care in ensuring the accuracy of their registration statement, they can be held liable for any losses suffered by investors.

Civil Liability Under Section 11 Is Imposed on Issuers Who