Civil Liability Under Section 12 of the 1933 Act

The video tutorial discusses issuer liability under Sections 11 and 12A, focusing on civil actions when issuers fail to comply with registration requirements or when there are material omissions in disclosure documents. It highlights that purchasers do not need to rely on disclosures, but they must not be aware of inadequacies at the time of purchase. The tutorial explains the potential for recovering purchase prices and damages, emphasizing the impact on businesses during original securities issuance.

What limitation is placed on the purchaser regarding knowledge of inadequacy at the time of purchase?

How does the cause of action affect businesses at the time of issuance?