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of <h1>Liability for misleading prospectus statements under Section 447, unless proven immaterial or believed true at issuance.</h1> Criminal liability arises for any person authorizing the issuance of a prospectus containing untrue or misleading statements or omissions that could mislead. Liability is established under section 447, unless the person can prove the statement or omission was immaterial or that they reasonably believed it was true or necessary at the time of issuance.
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