4.1.12.1. Liability for False Registration Statements
Section 11 of the Securities Act of 1933 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 has been 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 accou