Defenses in Section 11 and 12 of Securities Actions

The video tutorial discusses the defenses available to issuers of securities when they fail to comply with registration requirements, focusing on Section 11 and Section 12 of the 1933 Act. It outlines four main defenses: materiality, statute of limitations, due diligence, and negative causation. The materiality defense argues that any failure to disclose was not significant enough to affect an investor's decision. The statute of limitations defense is based on the time limit for bringing an action. The due diligence defense requires issuers to show they exercised reasonable care in verifying information. Lastly, the negative causation defense claims that any misstatement or omission did not cause the investor's loss.

How can the statute of limitations serve as a defense for issuers in securities claims?

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Describe the concept of negative causation defense in securities law.

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