The element of scienter in the context of a securities fraud case means that the seller of securities either knew or believed the represented facts to be untrue.

Question

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Scienter refers to the intent or knowledge of wrongdoing. In securities fraud, it means the person making the representations about the securities knew they were false or was reckless in not knowing, indicating a deliberate intent to deceive or manipulate investors.

The Element of Scienter in the Context of a Securities