In a 10b-5 action brought by the government, scienter may be pleaded by alleging facts (1) showing that the defendant had both motive and opportunity to commit the fraud or (2) constituting strong circumstantial evidence of scienter.

Contributed in 2008 by Brian Ketcham
Last edited 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...
A change in the rights of the holder of a security is a purchase or sale such as to support a Rule 10b-5 claim if the change affects the nature or...
vouch for authority for rule...
Pursuant to the Private Securities Litigation Reform Act, a plaintiff in a private civil action claiming a Rule 10b-5 violation can withstand a...
complete authority for rule...
A Rule 10b-5 claim may be dismissed for lack of materiality at a preliminary stage of litigation where the alleged statement or omission is...