Vulcan inc

Vulcan inc - mineral-rich land, resulting in a significant...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Stephanie Baggio BLW 201 Professor Devience Vulcan, Inc. Brief Vulcan, Inc. Brief Facts: Johnson, the chief geologist, retained extremely promising samples from land by lying about being from a motion picture company. The CEO, Stewart Myer, and other executives such as Martha Bordeaux, Lamont Johnson, and Natasha Bylinski, use this material insider information to purchase shares of Vulcan as well as adjacent land. Rumors about a profitable endeavor involving Vulcan spread, which lead Myer to prepare a press release in which he lied and said that the rumors were false and samples were marginal and normal. After the land was officially acquired, Myer released another press releasing disclosing the information about the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mineral-rich land, resulting in a significant increase in the stock price. Those who were aware of this endeavor and withheld the information profited greatly. Issue: The CEO and the other executives used material insider information for their own benefit in buying stock and land. Also, the information was not fully disclosed to the public, which is illegal. Furthermore, the CEO lied on the first press release, thus making this case an unethical business move as well as an illegal action. I would hold the CEO, Johnson, Bordeaux, and Bylinski, who withheld the material insider information, liable and condemn their action illegal....
View Full Document

This note was uploaded on 10/23/2011 for the course BLW 201 taught by Professor Devience during the Fall '11 term at DePaul.

Ask a homework question - tutors are online