The court of appeals affirmed a judgment. The court held that a corporate officer’s Sarbanes-Oxley certification would be probative of securities fraud scienter only if the officer was severely reckless in certifying the accuracy of the associated financial statements.
In early 2004, InVision Technologies, Inc. announced that it had entered into a merger agreement with General Electric (GE). Several months later InVision issued a press release that cast doubt on the merger because of potential violations of the Foreign Corrupt Practices Act (FCPA). InVision later entered into a non-prosecution agreement with the government, paid a fine, and the merger went through.
