Aquaman is president of a marine research company called "Underwater Leagues, Inc." On April 1, the research director of
Posted: Wed Jul 06, 2022 6:09 am
Aquaman is president of a marine research company called"Underwater Leagues, Inc." On April 1, the research director ofUnderwater Leagues tells Aquaman that they've come up with"Oxygum," a means of breathing underwater by chewing a special kindof gum. Aquaman knows a great product when he hears it.He delays announcing the invention to the public so that he can buyall the stock he can get his hands on. He buys 50,000 shares ofUnderwater Leagues, at $10 a share. After the announcement, theshare price skyrockets to $50 per share.
a) If the shareholders bring a derivative action againstAquaman, what federal law should they accuse Aquaman of havingviolated (i.e., which federal statute)?
b) Did Aquaman actually violate that statute? Explain.
c) If Aquaman were found to have violated that statute, whatremedy would the shareholders be able to seek (i.e., how much moneywould Aquaman be liable for)?
For this assignment, please use federal case and statutory lawsince the issues are SEC (federal) issues.
a) If the shareholders bring a derivative action againstAquaman, what federal law should they accuse Aquaman of havingviolated (i.e., which federal statute)?
b) Did Aquaman actually violate that statute? Explain.
c) If Aquaman were found to have violated that statute, whatremedy would the shareholders be able to seek (i.e., how much moneywould Aquaman be liable for)?
For this assignment, please use federal case and statutory lawsince the issues are SEC (federal) issues.