[Download] "Magna Investment Corp. v. John Does One Through Two Hundred" by Eleventh Circuit U.S. Court of Appeals # Book PDF Kindle ePub Free
eBook details
- Title: Magna Investment Corp. v. John Does One Through Two Hundred
- Author : Eleventh Circuit U.S. Court of Appeals
- Release Date : January 13, 1991
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 69 KB
Description
Magna Investment Corporation brought suit against Price Waterhouse, an accounting firm. The suit alleges, among other things, violations of the Securities Exchange Act of 1934, §Â§ 10(b) and 18(a),1 and Rule 10b-5,2 in connection with the actions of Price Waterhouse in performing an audit of, and in issuing an opinion on the financial state of, Electronic Specialty Products, Inc. The district court granted Price Waterhouse summary judgment on the section 10(b) and Rule 10b-5 claims based on its reading of the Supreme Court's decision in Ernst & Ernst v. Hochfelder, 425 U.S. 185, 96 S. Ct. 1375, 47 L. Ed. 2d 668 (1976). In Hochfelder, the Supreme Court held that a private cause of action cannot exist under section 10(b) and Rule 10b-5 without the element of scienter, 425 U.S. at 193, 96 S. Ct. at 1381, which the Court defined as ""a mental state embracing intent to deceive, manipulate, or defraud,"" 425 U.S. at 193 n. 12, 96 S. Ct. at 1381 n. 12. The district court in this case concluded that, because Magna failed to show that Price Waterhouse ""intentionally sought to deceive, manipulate or defraud through the issuance of the 1985 and 1986 F/S,"" Price Waterhouse did not possess the scienter necessary to establish liability under section 10(b) or Rule 10b-5.