Series 24: Liability Arising In Connection With False Registration Statements

Liability Arising in Connection with False Registration Statements – Section 11 of the Securities Act of 1933

Section 11 of the 1933 Act lays out the consequences for filing a misleading registration statement. Under the Act, investors may sue various parties involved in the registration process of a new offering if there was a material misrepresentation or omission in the registration statement. Defendants may include any party that signed the registration statement including:

• • The issuer
• • The issuer’s executive officers
• • The issuer’s principal accounting officer