In a recent decision the United States District Court for the Sourthern District of New York seemingly broke with Second Circuit precedent to hold that the SEC must prove scienter to get an injunction under Rule lOb-5. The author suggests that the district court's decision is reconcilable with recent second Circuit decisions and presents reasons why the district court's holding should be adopted by the Second Circuit.
Joan M. Bolotin,
The Reach of the SEC Under Rule 10b-5 Is Further Restricted: Negligent Conduct Is Insufficient to Warrant Commission Instigated Injunctive Relief,
31 U. Miami L. Rev.
Available at: https://repository.law.miami.edu/umlr/vol31/iss5/9