Facts:  According to the SECinvestigation, in 2015, Adam and Mary were roommates. They hadknown each other since childhood. Adam is a vegan and aspokesperson for an animal rights group. Mary is an MBA graduatefrom Stanford and an analyst for a prominent Wall Street brokeragehouse. Adam often engages in heated debates with Mary about herchoice of employment, suggesting she is engaged in immoralactivity. Adam, deeply concerned about Mary’s choices in her life,once bought her a copy of The Sixth Extinction: An UnnaturalHistory, a book about the future of the world. She gave thebook to her secretary.

Mary’s employer planned to publicly announce its negativeearnings forecast of MeadowLife Vitamins, an herbal vitamin andremedy company. Mary casually mentioned to Adam, one day before theannouncement, that it was time to sell that vitamin stock he heldbefore it “tanked” big time Unbeknownst to Mary, Adam was a memberof the board of directors of MeadowLife. As a result of herwarning, Adam was able to warn his fellow board of directors aboutthe forthcoming negative announcement and they all sold theirshares at a profit before the stock took a significant loss. Theboard did not tell anyone else in the company and many employeeslost significant value in their 401(k) accounts as a result. Adamtook his profits and invested in a high yield mutual bond fund.

The SEC has provided this information to the corporation.

Assignment:  Advise thecorporation by drafting a legal opinion that identifies importantlegal issues, discusses the applicable law, and reaches logicalconclusions. Make reasonable assumptions when necessary to completeyour analysis. In addition, identify, analyze, and suggest how toresolve any ethical issues that exist in this scenario.

In your legal opinion, (1) set out the legal questions or issuesthat must be addressed. (2) Then, state the relevant facts.Remember, not all facts may be relevant. Typically, a fact isrelevant if it had an impact on the case’s outcome. (3) Thereafter,begin your analysis, on which the legal opinion depends by settingout the provisions of the law (or laws) that are applicable to therelevant facts. (4) Finally, answer the legal questions or issuesthat you initially identified by applying the law to the relevantfacts to reach logical conclusions.