Felicity brought a lawsuit under Section 11 of the 1933 Act against Mojo Corp.What will Felicity have to prove in order to prevail?

Question

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Felicity will have to prove that there was a material misstatement or omission in the registration statement and that she suffered a loss as a result. This is the basic requirement for a Section 11 claim under the 1933 Act. She does not necessarily have to prove that Mojo was negligent or intended to deceive investors, although those factors may play a role in the case. And simply proving that Felicity relied on the registration statement may not be enough to establish liability under Section 11.

Felicity Brought a Lawsuit Under Section 11 of the 1933