Due diligence defense

{
  "id": "MLC-T-LAW-001772",
  "term": "Due diligence defense",
  "field": "Law",
  "definition": "A legal argument asserting that a defendant should not be held liable because they exercised reasonable care and took all necessary steps to prevent a violation or harm. This defense is often available in securities law, where issuers can avoid liability for misstatements if they can prove they conducted a thorough investigation. It demonstrates that the defendant acted prudently and in good faith.",
  "url": "https://mlchart.com/terminology/law/due-diligence-defense/"
}