Discuss the ethical or legal implications that may flow

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Harminder recently had dinner with his sister Priya, who is a senior accountant at AAA Ltd, a large pharmaceutical company listed on the Australian Stock Exchange. Over dinner Priya expressed her concerns about many recent complaints about one of their leading products CoVax. CoVax, which is promoted as a cure for many deadly diseases, has reportedly been responsible for many premature deaths of clients.

There is to be a major investigation by authorities into the company and its practices regarding the drug CoVax and other products. Harminder and his parents have always supported Priya's career decisions and consequently have invested many thousands of dollars buying shares in AAA Ltd. The family are now considering selling all their shares before this news hits the financial press, which is imminent in the next few days.

Required:

Question 1: Discuss the ethical or legal implications that may flow if Harminder and his family sell their shares prior to this announcement. Ensure you cite all references in your answer.

Reference no: EM132608651

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