ABC CORP. is a corporation that was formed on October 31, 2019. Jenny was one of the initial and bought 15% of ABC CORP.'s stock, effective upon its formation date. On November 15, 201, a former employee of ABC CORP. wrote a letter to the CEO stating that they would be filing a lawsuit against the company for employment discrimination and seeking punitive damages. Around that time, Jenny happened to be looking to buy a new mansion. On November 21, 2019, Jenny sold some of his stock to fund the on a house she found. On December 1, 2019, the employee who threatened to sue the company filed the lawsuit (which means it is now a matter of public record). If the SEC came after Jenny for insider trading, discuss whether you think they would be successful in their claim. Is there any other securities law that Jenny violated?

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