Under Section 11 of the 1933 Act, the purchaser need not prove that the defendant negligently or intentionally misstated or omitted a material fact.

Question

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Section 11 of the 1933 Act provides for strict liability of the issuer, underwriter, and other relevant persons for any material misstatements or omissions in the registration statement. The burden of proof is on the defendant to prove that they conducted reasonable investigation and had reasonable grounds to believe that there were no untrue statements or omissions in the registration statement. The purchaser need not prove any intent or negligence on the part of the defendant.

Under Section 11 of the 1933 Act, the Purchaser Need