The U.S.Supreme Court ruled in Ernst & Ernst v.Hochfelder that:

Question

Quizplus · Accepted Answer

The U.S. Supreme Court ruled in Ernst & Ernst v. Hochfelder that a private cause of action for damages under Rule 10b-5 of the Securities Exchange Act of 1934 does not exist in the absence of an allegation of scienter, or intent to deceive or manipulate. Therefore, the correct option is A, which states that a private cause of action for damages does not come under Rule 10b-5 without any allegation of scienter. The other options given are either incorrect or do not reflect the court's ruling in this case.

The USSupreme Court Ruled in Ernst & Ernst V