Law, Business, and Society 9th Edition by Tony McAdams

Exercise 18

Assume a midlevel manager learns that his corporation is about to go bankrupt because of about-to-be-disclosed improprieties. He calls his lawyer to ask about his personal exposure. After advising him, the lawyer immediately sells all of her holdings in that stock. Later that day, the news breaks and the stock price tumbles 60 percent.
a. Does anyone have insider trading liability
b. If so, in what amount