It’s just a tip, isn’t it? Arlene Barry had just left the most recent board meeting of Panda Toy Manufacturing. Arlene served as chairman of the board and was also a majority stockholder in the...

It’s just a tip, isn’t it?

Arlene Barry had just left the most recent board meeting of Panda Toy Manufacturing. Arlene served as chairman of the board and was also a majority stockholder in the business. Panda Toy Manufacturing had just learned that the company was being sued by a multinational retail toy store for failure to use flame-retardant filling in its stuffed panda bears. Arlene knew that the business had been cutting costs and had intentionally used filling that was not up to appropriate standards. She was sure that Panda Toy would lose the lawsuit and knew that the value of her stock would drop considerably. Arlene was considering quickly selling her stock before the lawsuit became public knowledge. What should Arlene do? What would you do?