Securities Law Commons^™

Section 11 Of The Securities Act—A Proposal For Allocating Liability, John R. Allison

Washington Law Review

Section 11 gives each non-issuer participant a right to recover contribution from the other participants subject to liability. This comment will show how the right to contribution may be used to make the consequences of participating in registration more predictable, by limiting a non-issuer participant's potential liability to the consequences of his own carelessness. Part I will review briefly the registration requirement, which determines the incidence of section 11 liability. Part I will then discuss the section 11 cause of action, and demonstrate the importance and function of the right to recover contribution. Finally, Part III will analyze the right …