Recent Applications of Section 11 of the Securities Act of 1933 by the First Department

Section 11 claims are sometimes described as imposing close to “strict liability” because they do not generally require plaintiffs to prove scienter or reliance and thus the motion to dismiss phase remains critical for defendants. Skadden attorneys Lara Flath, Julie Cohen, Katherine Kazmin and Brian Tang discuss two decisions from the Supreme Court of New York Appellate Division, First Department, on the scope of Section 11 liability at the motion to dismiss phase and the implications of those decisions.