Commonwealth Edison Co. registered 3 million common shares with the SEC and sold the shares for about $28 per share. The price of the purchasers' stock dropped to $21 when the Atomic Safety and Licensing Board denied ComEd's application to license one of its reactors. It was the first and only time the Board had denied a license application.
ComEd assumed that the license would be granted; therefore, its registration statement failed to disclose the pendency of the license application. Did ComEd violate Section 11 of the Securities Act?