Scenario: Hoss Cartwright is a quality control manager for Ponderosa Pharmaceutical, Inc. (Ponderosa). The company is headquartered and has its principal production facility in Carson City, Nevada. For several years, Ponderosa has been engaged in the research and development of a new cancer drug, Bonanza. As part of the federal regulatory procedure for mass-marketing a new drug, Ponderosa applied to the Food and Drug Administration (FDA) for the final approval of Bonanza. Yesterday, Cartwright's supervisor informed him in a somber fashion that the FDA had rejected the company's application for final approval of Bonanza. Apparently, the FDA was concerned about serious side effects that manifested during the drug's clinical trials. Cartwright's supervisor further advised him that next Monday, Ponderosa is scheduled to "go public" with a press release concerning the FDA's rejection of Bonanza. Cartwright is frantic. He owns approximately 6,000 shares of Ponderosa stock, and he knows that news of the FDA's rejection of Bonanza will be disastrous to the company, its employees, and its shareholders. Ponderosa stock is currently valued at $47.50 per share, and news of the FDA's disapproval of Bonanza will likely drive the stock down to one-half of its current value. Cartwright quickly ran the numbers on his calculator. A reduction of 50% in the stock's value would represent a personal loss of $142,500. Cartwright's Ponderosa stock is his only retirement plan, aside from a modest pension he will receive from the company (assuming the company survives Monday's announcement.) Cartwright has a plan. Today, he will instruct his financial planner to immediately sell all 6,000 shares of his Ponderosa stock. Cartwright rationalizes his decision by assuring himself that anyone else in his position would do the same thing. Is Hoss Cartwright's plan legal? If not legal, what consequences does Cartwright face? Is the plan ethical?