Ernst & Ernst v. Hochfelder
Citation
425 U.S. 185 (1976)
Facts
Stub — to be completed.
Issue
Stub — to be completed.
Holding
Stub — to be completed.
Rule
A private cause of action under § 10(b) and Rule 10b-5 requires proof of scienter — an intent to deceive, manipulate, or defraud; negligence is insufficient.
Significance
Established scienter as a required element of private Rule 10b-5 claims, foreclosing negligence-based securities fraud actions.