Question $6(2$ points$)$

Gary buys stock in Soccer, Inc. through an initial public offering and suffers a loss. It is later revealed that the

company failed to disclose a material loss suffered in the prior year. Which statement is FALSE?

Gary may be able to sue civilly to recover his losses.

Persons who violate the $1933$ Securities Act may be subject to criminal sanctions.

Only intentional violations of the $1933$ Act can be subject to civil or criminal consequences.

An underwriter involved in the Soccer registration process will not be liable if he used due diligence in working

on or preparing the registration materials and reasonably believed them to be true.