1. MidAmerican Bank operates branches in eight local counties. It is a conservative institution that has earned the loyalty of the local farm populace over the years. Approximately 35 individuals own MidAmerican shares. Old time director W.C. Fields contacts the children of the deceased founder of MidAmerican. The children, Barbara, and Lynn Menke are married with young families. Fields offers the Menke daughters $12 per share for their father's stock, 20 percent of the total outstanding, which they inherited. Later, he bids against himself, raising the price to $15. Each Menke daughter then sells, grossing over $200,000 each. Two months later, Floatman's Bank, a bigger out of state bank, makes a friendly tender offer (or takeover bid - the terms are used interchangeably) for MidAmerican shares at $30 per share. Barbara and Lynn have learned that Fields went around to several of the shareholders buying up other shares at $12 and at $15. Barbara and her sister feel abused. They are in your office. What course of action should the sisters pursue?
   1. A federal claim for insider trading pursuant to SEC Rule 10b-5 and the Securities Exchange Act of 1934.
   2. A state law claim of breach of fiduciary duty under the "special facts" doctrine.
   3. Answers (A) and (B) are equally advisable.
   4. A state law fraud claim.