Kevin, a C.P.A., prepares and certifies Cupcake Corporation's financial statements. These statements are included in Cupcake's registration statement filed with the Securities and Exchange Commission before Cupcake's offering of securities. Durant buys a security covered by the registration statement. Based on this transaction, Durant files a suit against Kevin under Section 11 and Section 10(b) of the Securities Exchange Act of 1934. To succeed in the suit, what must Durant prove? Kevin responds that Durant was not in privity with him and that even if she had been in privity, he cannot prove his lack of due diligence.
Can Kevin prevail on these grounds? Why or why not? Explain your answers thoroughly.