In order to be actionable under Rule 10b-5,the misstatements or omissions must be made with

Question

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Rule 10b-5 requires that the misstatements or omissions be made with scienter, which means that they are made with intent to deceive, manipulate, or defraud. Negligence or lack of due care is not sufficient for a violation of Rule 10b-5. Simply stating facts, even if they are false, may not be enough to be actionable under Rule 10b-5.

In Order to Be Actionable Under Rule 10b-5,the Misstatements or Omissions