Kush is a lawyer for W&K, LLP- a law firm that represents th…
Kush is a lawyer for W&K, LLP- a law firm that represents the public company Asklaw. He was drafting legal documents for the merger between Legal Zoom and Asklaw, two companies that provide on-line legal research for lawyers. Kush told his girlfriend, Leah, about the deal and how profitable it will be for Asklaw. One day, Leah was having lunch with Mina–a second year law student who interned with W&K and worked directly under Kush. Out of the blue, Leah asks Mina if she has ever used Asklaw to conduct research. When Mina mentioned that “she loves Asklaw” , Leah responded, “well, I hate to break it to you but it is about to get bought by another company.” The next day, Mina purchased 1000 shares of Asklaw for a mere $10 a share. After 4 months of owning the stock, when the merger between Legal Zoom and Asklaw was publicly announced, the value of Mina’s shares tripled and she sold them for a profit. Who could the SEC prosecute for insider trading in this scenario?
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