A more thorough explanation:

Definition: Scienter refers to the intent or knowledge of wrongdoing. It means that a person knows that their actions are wrong before they commit them.

Examples:

• A company knowingly sells a defective product to consumers.
• An individual intentionally lies on their tax return to avoid paying taxes.
• A person steals money from their employer, knowing that it is illegal.

These examples illustrate scienter because in each case, the person or company knew that their actions were wrong before they committed them. They had the intent or knowledge of wrongdoing, which is a key element in proving certain legal claims, such as fraud or insider trading.