SCIENTER
scienter (sI-en-t<<schwa>>r or see-), n.[Latin “knowingly”] 1. A degree of knowledge that
makes a person legally responsible for the consequences of his or her act or omission; the fact of
an act’s having been done knowingly, esp. as a ground for civil damages or criminal punishment.
See KNOWLEDGE; MENS REA . [Cases: Criminal Law 20; Negligence 212, 302. C.J.S.
Criminal Law §§ 31–33, 35–39; Negligence§§ 44, 46–55, 913.] 2. A mental state consisting in an
intent to deceive, manipulate, or defraud. • In this sense, the term is used most often in the context
of securities fraud. The Supreme Court has held that to establish a claim for damages under Rule
10b-5, a plaintiff must prove that the defendant acted with scienter. Ernst & Ernst v. Hochfelder,
425 U.S. 185, 96 S.Ct. 1375 (1976). [Cases: Securities Regulation 60.45. C.J.S. Securities
Regulation § 217.] [Blacks Law 8th]