Aug. 23 at 3:59 PM
$DIDIY from CHAT GPT::Count IV: Securities Act §11 (false statements in registration statements) Count V: Securities Act §12(a)(2) (false statements in prospectus) Count VI: Securities Act §15 (control-person liability for §11/§12 violations) How much fine can court give for above counts?
Summary Table
Penalty Type Natural Person (2025) Other Person (2025)
Standard Violation (§ 20(d))
$11,823
$118,225
Fraud-related violation (§ 20(d))
$118,225
$3,482,201
(Penalties are adjusted for inflation, effective for violations occurring after Nov 2, 2015 and imposed after Jan 15, 2025)
SEC
Key Takeaways
Investor lawsuits under §§ 11, 12(a)(2), 15 don't carry fixed fines—remedies
However, if the SEC intervenes with enforcement actions, it can pursue civil penalties using the inflation-adjusted figures above.
The maximum penalty amounts in 2025 reflect modest increases (approx. +2.6%) over 2024.