Illinois Part of Encouraging Trend in Corporate Fraud Cases
Pamela A. MacLean of the National Law Journal reports that courts in Illinois, New Jersey and New York are giving more credence to the concept of collective scienter, or guilty knowledge by any corporate employee, in securities fraud cases. Plaintiffs benefit from this trend because they do not need to prove fraudulent intent by a particular executive. It is far easier for a plaintiff to prove knowledge than it is for that same plaintiff to prove intent.
This trend, to make corporations more responsible and more accountable, is especially encouraging in light of recent corporate scandals including Enron and World Com. Hurley McKenna & Mertz is dedicated to protecting the rights of individuals and to placing people before profit.
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