Definition
The defendant's knowledge of wrongdoing, or intent to deceive, which is often required to prove securities fraud. It is the difference between a mistake and a scheme, and it is notoriously hard to prove.
Example Usage
The complaint failed to allege scienter with enough detail, so the securities fraud claims were dismissed.
Origin
Latin 'scienter', meaning knowingly, from 'scire', to know.
Source: Securities Exchange Act of 1934 case law
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