The Jury Decides Case You are a member of a jury. You have just heard the closing arguments in a case of insider trading. The jury has gone into the "jury room" to reach a decision. As the group sits around the table, a jury member looks at you and says, "You're young. I see you are studying business. I nominate you to be the jury foreman." In a few minutes, you are voted foreman unanimously.

The judge suggested the foreman review the major points in the case. As you recall, here are the points:

1. The accused is an executive at an investment firm in New York. He learned from a colleague that a major pharmaceutical firm had just reached a "breakthrough" on treatment of diabetes. The colleague told the executive that the firm would make millions and that no one was allowed to say anything to anyone or they would be fired and might even be sued.

2. The prosecution says the executive bought 10,000 shares of the pharmaceutical firm's stock before the news became public. The stock rose 25% within two weeks of the news being reported. The executive made at least $1,000,000 personally and his firm made several million.

3. The executive's defense is that he had planned to buy the stock anyway and he was lucky. He says he knew nothing about the breakthrough.

4. The colleague - the prosecution's main witness against the defendant -- did not come across well when testifying. He said he could not remember if he told the executive about the breakthrough. He also did not know much about the defendant, his job title, how long he had worked at the firm or what kind of work he did. The colleague is still working at the pharmaceutical firm.

5. The prosecuting attorney said that this is a "clear case of fraud based on insider trading." He said that insider trading is one of the most serious crimes next to murder and that the jury must find the defendant guilty.

6. The executive's lawyer said that making millions on stock sales is "no big deal." He said, "It happens every day." He said no intelligent businessperson would criticize the executive for investing in a "good deal." He also said that this was not a case of insider trading.

Question :

How will you summarize the ethical issues in the case? And, how will you recommend that the jury members vote? Find out how many major "insider trading" cases have come to court? What were the reasons for finding defendants guilty? Are you very sure? Pretty sure? Not sure? That the defendant is guilty What are the harms connected with insider trading? Who is hurt? Be specific? Your job is to present facts and issues, not to sway the jury toward your opinion. The more detail you provide, the greater the respect jury members will give you.

Answer rating: 100% (QA)

Summarizing the ethical issues in the case we encounter several key points 1 Misuse of Insider Information The accused an executive at an investment firm allegedly received confidential information ab... View the full answer