Scienter is Required in a Private Action Under Rule 10b-5….pdfVIP

DePaul Law R eview Volume 25 Article 8 Issue 4 Summer 1976 Securities - 10b-5 - Scienter is Required in a Private Action Under Rule 10b-5 - Ernst Ernst v. Hochfelder, 96 S.Ct. 1375 (1976) Lynn Taylor Follow this nd dditional works t : http://vi .libr ry.dep /l w-review Recommended Cit tion Lynn T ylor, Securities - 10b-5 - Scienter is Required in a Private Action Under Rule 10b-5 - Ernst Ernst v. Hochfelder, 96 S .Ct. 1375 (1976), 25 DeP ul L. Rev. 962 (1976) Avail ble t : http://vi .libr ry.dep /l w-review/vol25/iss4/8 This Recent Cases is brought to you for free nd open ccess by the College of L w t Via S pienti e. It has been ccepted for inclusion in DeP ul L w Review by n uthorized dministr tor of Via S pienti e. For more inform tion, please cont ct mbernal2@dep , MHESS8@dep . RECENT CASE Securities-10b-5-SCIENTER Is REQUIRED IN A PRIVATE ACTION UNDER RULE 10b-5-Ernst Ernst v. Hochfelder, 96 S.Ct. 1375 (1976) In the last few years professionals have been the target of numerous suits brought by the public. Courts have shown a willingness to hold doctors, lawyers, accountants, and other professionals liable for their torts, including negligence. However, the Supreme Court has chosen to throw a protective cloak over professionals involved with the securities industry in their recent decision in Ernst Ernst v. Hochfelder. The suit was based on a negligence theory of liability brought under Section 2 and Rule 10b-53 of the Securities Exchange Act