Blinded By Sundstrand: The 'Good Faith' Defense

Law360, New York (April 28, 2008, 12:00 AM EDT) -- The recent case of Gebhart v. SEC, 2007 U.S. App. LEXIS 27183 (9th Cir. 2007), underscores the continuing confusion regarding the application of recklessness in securities fraud cases.

In Gebhart, the Ninth Circuit remanded an appeal from an SEC decision because the agency failed to apply the correct subjective component of recklessness.

Similarly, a District Court recently vacated its own prior grant of summary judgment against the defendant because, due to the defendant’s good-faith beliefs, a jury could reasonably find that the defendant did not possess...
To view the full article, register now.