One of the elements necessary to recover damages if there has been a material misstatement in a registration statement filed pursuant to the Securities Act of 1933 is that: issuer and plaintiff were in privity of contract with each other. the plaintiff knew the auditor. there was a material false or misleading statement in the financial statements. issuer failed to exercise due care in connection with the sale of the securities.

One of the elements necessary to recover damages if there has been a material misstatement in a registration statement filed pursuant to the Securities Act of 1933 is that:

there was a material false or misleading statement in the financial statements.

Explanation:

A registration statement includes prospectus and other sets of documents, which a company files with the U.S. SEC (Securities and Exchange Commission) during a public offering of its securities.  Section 11 of the Securities Act specifically provides that an accountant may be held liable to any purchaser of a security who relies on some materially misstated financial statements included in the registration statement.

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