Recklessness

Recklessness is an extreme departure from ordinary care that presents a danger of misleading others which the actor knew of or must have been aware of. Most US courts accept it as sufficient to establish scienter under Rule 10b-5.

law and enforcement · updated 2026-09-08

See also

• Scienter — Scienter is the mental state of intending to deceive, manipulate or defraud. It is a required element of a Rule 10b-5 claim, and i…
• Rule 10b-5 — Rule 10b-5 is the SEC's general antifraud rule, adopted under Exchange Act section 10(b). It prohibits any device, scheme or artif…

Terms that refer here

Scienter

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