AI Integrity, LLC did a public offering of its shares in $2023$ because its business value increased exponentially as a result of the increased use of artificial intelligence. After the public offering, AI Integrity hired Accomplished Auditors to prepare the necessary financial statements and SEC paperwork for its subsequent disclosures under the Securities Exchange Act of $1934.$ The team included Anitsky, a recent college graduate who had majored in accounting. Because AI Integrity needed the documentation without allowing for the usual month's of preparation time and Accomplished Auditors was short staffed, no one checked a crucial part of Anitsky's work and it contained a number of misstatements. What is AI Integrity's and Accomplished Auditor's best defense to the disappointed shareholder's lawsuit for fraud?

Group of answer choices

There is no defense under Section $11$ of the Securities Act of $1933.$

The shareholders did not justifiably rely on the financial statements contained in the documentation.

Even if the auditor's work was negligent, there was no scienter for fraud.

The shareholders had to file a complaint with AI Integrity's Board of Directors before filing a lawsuit.