Where an employee furnishes to others within a company false information that is later incorporated into a consequently deceptive statement by the company, that employee's scienter can be imputed to the company as to the deception.

Contributed in 2008 by David Gold
You've come to a rule . Check out the authorities below. When you find one you like, add it to your SpinDoc. more...
Please sign in or sign up to see the authorities.
Contribution Suggestions
vouch for authority for rule...
Financial restatements provide some basis for inferring scienter when the restatement was based on GAAP violations and contradicted prior public...
vouch for authority for rule...
Where parties entering into reciprocal contracts to exchange similar amounts of money for similar services it is improper to book revenues from the...
vouch for authority for rule...
Timing of insider trading is a factor in determining whether the trading was unusual or suspicious such as to support a strong inference of...