Jamie created an app which helped people track "negative thoughts." Essentially the app claimed it would cause the user's phone to buzz anytime a person had a "negative thought" and then posted a positive message.

The app was so popular, over 100 million users, Jamie was able to take his company public and sell shares on the New York Stock Exchange. Jamie was only too happy to include his friends from College in his success. He hired many of his friends as employees and made sure part of their compensation was stock in the company. Recently Jamie became aware the company was going to be sued for making false claims about the app. Jamie called all of his friends from College and told them they should sell their stock in the company "right now." Please discuss the possible legal issues facing Jamie. Include in your answer whether the Securities and Exchange Commission would be involved in investigating the actions of Jamie.