Editing Class action (section)

====Standing====

In securities class actions that allege violations of [[Securities Act of 1933#Civil liability; Sections 11 and 12|Section 11]] of the [[Securities Act of 1933]], "officers and directors are liable together with the corporation for material misrepresentations in the registration statement."<ref>{{cite web |url=https://corpgov.law.harvard.edu/2019/09/19/the-limits-of-delaware-corporate-law-internal-affairs-federal-forum-provisions-and-sciabacucchi/ |title=The Limits of Delaware Corporate Law: Internal Affairs, Federal Forum Provisions, and Sciabacucchi |last=Grundfest |first=Joseph A. |date= September 2019|website=Harvard Law School on Corporate Governance and Financial Regulation}}</ref>

To have [[Standing (law)|standing]] to sue under [[Securities Act of 1933#Civil liability; Sections 11 and 12|Section 11]] of the 1933 Act in a class action, a plaintiff must be able to prove that he can trace his shares to the registration statement in question, as to which there is alleged a material misstatement or omission.<ref>{{Cite web|url=https://www.americanbar.org/groups/litigation/publications/litigation-news/top-stories/2014/securities-fraud-plaintiff-need-not-show-reliance/|title=Securities Fraud Plaintiff Need Not Show Reliance|publisher=American Bar Association}}</ref><ref name="autoa">[https://www.supremecourt.gov/opinions/22pdf/22-200_097c.pdf ''Slack v. Prani''], [[Supreme Court of the United States]] (2023).</ref> In the absence of an ability to actually trace his shares, such as when securities issued at multiple times are held by the depository trust company in a fungible bulk and physical tracing of particular shares may be impossible, the plaintiff may be barred from pursuing his claim for lack of standing.<ref>{{Cite web|url=https://www.americanbar.org/groups/litigation/committees/securities/practice/2017/pleading-section-11-liability-for-secondary-offerings/|title=Pleading Section 11 Liability for Secondary Offerings|publisher=American Bar Association}}</ref><ref>{{Cite web|url=http://securities.stanford.edu/filings-documents/1050/PUDA00_02/2013101_f01o_13CV02312.pdf |archive-url=https://web.archive.org/web/20151008202057/http://securities.stanford.edu/filings-documents/1050/PUDA00_02/2013101_f01o_13CV02312.pdf |archive-date=2015-10-08 |url-status=live|title=CITIC Trust_FIC_Order_PACER.pdf<!-- Bot generated title -->}}{{registration required}}</ref><ref>{{Cite journal|url=https://www.questia.com/library/journal/1G1-439953395/morrison-the-restricted-scope-of-securities-act-section|title=Morrison, the Restricted Scope of Securities Act Section 11 Liability, and Prospects for Regulatory Reform|first=Joseph A.|last=Grundfest|date=September 22, 2015|journal=Journal of Corporation Law|volume=41|issue=1|pages=38|via=|access-date=December 28, 2020|archive-date=August 6, 2020|archive-url=https://web.archive.org/web/20200806231517/https://www.questia.com/library/journal/1G1-439953395/morrison-the-restricted-scope-of-securities-act-section|url-status=dead}}</ref><ref name="autogenerated1">{{Cite web|url=https://www.bloombergindustry.com/|title=Bloomberg Industry Group|website=Bloomberg Industry}}</ref><ref name="autoa"/>