In which defense do defendants affirm that they have reasonable grounds to believe that certain statements had no omission of material facts; Due diligence defense.
Any defendant except the issuer can assert this defense and it requires that the defendant demonstrate that she investigated the registration announcement and had reasonable grounds to believe that the registration statement become accurate and had no omission of material facts.
section 11 of the Securities Act imposes liability for underwriters, directors, and others involved with public security offerings. The statute also provides a due diligence defense for everyone, except the issuer.
