Assignment task:
Gary Growen and Cliff Simone worked in a rail yard owned by NJ Railroads (NJR). Growen was a mechanical engineer; Simone was a trainman - not your usual corporate insiders . The SEC charged them with making more than $2 million by trading on inside information that their company was going to be sold. According to SEC, the men noticed an usual number of tours by people dressed in business attire. Although they were not told anything officially - or unofficially - they had a hunch something was up and shared their hunch with their families. They, together with family members, bought tens of thousands of call options on NJR stock. When Castle Investment Partner acquired NJR, they all cashed in big-time and the SEC swooped in. The SEC claimed Growen was asked to make a list of all locomotives, freight cars, trailers and containers, together with their value - something he had never been asked to do before. SEC said that the men also heard gossip and rumors while on the job.Both men signed company code of conduct that provided employees could not trade on or disseminate material non-public information. Did the men violate any legal or moral duties?