Missouri
How Ernst & Ernst v. Hochfelder applies in Missouri: state-specific rules, key cases, and bar exam notes for Securities Law.
Missouri law, similar to federal standards, applies the principles of reliance and materiality in securities fraud cases, holding that plaintiffs must demonstrate both to succeed in a claim. Additionally, Missouri recognizes the importance of intent and states that the fraudulent intent must be established in cases involving misrepresentation.
In Missouri, under the Missouri Securities Act, a plaintiff must prove that a misrepresentation was made, that it was material, and that it was made with intent to deceive.
The Missouri Court of Appeals held that the plaintiff must establish reliance on the misrepresentation in a securities fraud case.
The court clarified that intent to deceive in securities fraud cases must be shown by the circumstances surrounding the misrepresentation.
The court noted that the materiality of statements is determined by whether a reasonable investor would consider them important.
Missouri's approach aligns closely with the federal securities law standard established in Ernst & Ernst v. Hochfelder, particularly regarding the necessity of showing intent and reliance. However, Missouri courts have placed additional emphasis on the circumstances that demonstrate fraudulent intent beyond what might be analyzed in federal courts.
Understanding the principles from Ernst & Ernst v. Hochfelder is relevant for the Missouri bar exam, especially in securities law questions that require analysis of intent and reliance in fraud cases.