What are the common defenses used in securities fraud cases?

In Washington, common defenses used in securities fraud cases are based on the facts surrounding the case. Common arguments include lack of intent, lack of knowledge of the securities fraud, and lack of reliance on the alleged fraudulent statement. The defense of lack of intent is when a defendant argues that they did not mean to defraud any individual or entity. This defense generally requires proof that the defendant acted in good faith and did not intend to harm another. The defense of lack of knowledge claims that the defendant was unaware that the statement or action was fraudulent. This defense also relies on good-faith actions by the defendant and may include evidence that the defendant had no reason to believe any statement or action was fraudulent. The defense of lack of reliance is when a defendant argues that the alleged fraudulent statement was not used to guide their business decisions. In this case, the defendant must prove that they were not financially harmed by the fraudulent statement and that they did not rely on the fraudulent statement or act to make any decisions. To prevail in a securities fraud case in Washington, defendants must be able to prove that they had no intent to defraud, did not know of the fraudulent statement or action, and did not rely on the fraudulent statement for their decisions.

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What are the common defenses used in securities fraud cases?

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