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Full-Text Articles in Securities Law
Elements Of Recovery Under Rule 10b 5: Scienter, Reliance, And Plaintiff's Reasonable Conduct Requirement, Rutheford B. Campbell Jr.
Elements Of Recovery Under Rule 10b 5: Scienter, Reliance, And Plaintiff's Reasonable Conduct Requirement, Rutheford B. Campbell Jr.
Law Faculty Scholarly Articles
A comparison of the commentaries on rule 10b-5 indicates that uncertainty is widespread in this area of securities law. One area that is needlessly confused is the proper selection and definition of those elements necessary for recovery in a 10b-5 action. The purpose of this article is to consider four distinct elements that continue to be the source of constant litigation and comment and to suggest an approach that clarifies their meaning and use. The four elements are: (1) scienter (the defendant's state of mind), (2) reliance, (3) justifiable reliance, and (4) materiality. This article will analyze the use of …