A due diligence defense cannot be asserted by an accountant against the civil liabilities of Section 11(a) of the Securities Act of 1933.

Question

Quizplus · Accepted Answer

An accountant can assert a due diligence defense against the civil liabilities of Section 11(a) of the Securities Act of 1933, by demonstrating that they conducted a reasonable investigation and had reasonable grounds to believe, and did believe, that the statements in the registration statement were true and without omissions of material facts.

A Due Diligence Defense Cannot Be Asserted by an Accountant