Question
Lisa Ng works as a manager of new product developments for Ideas Inc. She was recently approached by Creators Inc. to come and work for
Lisa Ng works as a manager of new product developments for Ideas Inc. She was recently approached by Creators Inc. to come and work for them. They offered her $50,000 if she would quit Ideas and suggested she should try to get some of Ideas other product developers to come as well. Over the next few weeks Lisa secretly talked to some of the other Ideas developers. Lisa also copied some of the major designs Ideas was working on. Finally two months later, Lisa and 5 of the 10 top product developers, all gave Ideas 2 weeks' notice and then left and went to Creators. Ideas is outraged as it now is unable to complete several big contracts it had signed worth $500,000. Lisa and the other 5 product developers said they did nothing wrong, they gave fair warning of their departure and it is a free country and they have every right to work where they want. Lawyers have been contacted. Lisa was contacted by her brother Ken who works in mergers and acquisitions for a large law firm.Ken told Lisa that she should take the $50,000 she got from Creators and buy shares in Aza Inc. Ken told Lisa that he knew that Aza would be the target of a takeover bid in about three months as he was working on the deal, and if she bought shares of Aza now, she could sell them for a large profit once the takeover bid was announced to the public. Lisa took Ken's advice and bought $50,000 worth of Aza shares. Soon after the takeover was announced Lisa sold the shares for $70,000. A few months later Ken and Lisa were contacted regarding this trade and they deny that they did anything wrong but they have contacted lawyers.
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