KNOWLEDGE CEO CAN BE IMPUTED TO CORPORATION
Interesting opinion of the United States Court of Appeals for the Ninth Circuit
Knowledge can be both actual and constructive. The question is under what circumstances actual knowledge, for instance the CEO’s knowledge, can be imputed to the corporation. This question was addressed by the Ninth Circuit in its opinion of 23 October 2015 (securities class action lawsuit against ChinaCast Education Corporation et al).
Summary (prepared by court staff):
Reversing the dismissal of a securities fraud claim, the panel held that a CEO’s fraud could be imputed to his corporate employer, even though his alleged embezzlement and misleading …
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