If an underwriter discovers a material misstatement in a registration statement after the effective date but before distribution, which action is most consistent with the due diligence defense?

1. ASuspend the offering and work with counsel to amend the registration statement✓ Correct answer
2. BContinue distribution and seek clarification later
3. CIgnore the issue if the issuer downplays its significance
4. DRely on the company’s auditor to resolve the matter

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