scienter
- In the context of law, this is the knowledge a person has about the nature of their actions or the things they possess, which is often required to establish the occurrence of an offense
- It's a mental condition associated with fraudulent acts such as securities fraud, where a person intentionally sets out to mislead, manipulate, or dupe others
- The prosecution was unable to prove scienter because the defendant did not know that the item in their possession was illegal.
- In order to file for a fraud claim, it is important to demonstrate that the defendant had scienter, or the intent to defraud, at the time of the transaction.
- The investor was able to win the case after showing that the company's CEO acted with scienter when he misled shareholders about the firm's financial status.
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