Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bernard J. Ebbers, CEO and founder of the telecommunications giant, WorldCom, owed the corporation $375 million for a loan secured by shares he owned in

Bernard J. Ebbers, CEO and founder of the telecommunications giant, WorldCom, owed the corporation $375 million for a loan secured by shares he owned in the company. The value of the company's shares was declining, to the point that the value of its shares was less than the amount of the loan. On February 2, 2002, Mr. Ebbers entered into a series of communications with leading Wall Street stock analysts, whose opinion was helping to drive up the stock price, to counter negative news about the company's economic condition. , which was scaring investors. That day, the company's shares increased by 12% in value. Four months later, the company filed for bankruptcy protection due to its precarious economic condition.

1. Are the aforementioned actions illegal? Are they antithetical? Justify and explain your answer. 2. What is the difference between an illegal action and an unethical one? Justify and explain your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Law Express Human Rights

Authors: Claire De Than

5th Edition

1292210214, 978-1292210216

More Books

Students also viewed these Law questions