Insider Trading Donald C. Hoodes was the chief executive officer of the Sullair Corporation. As an officer of the corporation, he was regularly granted stock options to purchase stock of the company at a discount. On July 20, Hoodes sold 6,000 shares of Sullair common stock for $38,350. On July 31, Sullair terminated Hoodes as an officer of the corporation. On August 20, Hoodes exercised options to purchase 6,000 shares of Sullair stock that cost Hoodes $3.01 per share ($18,060) at the time they were trading at $4.50 per share ($27,000). Hoodes did not possess material nonpublic information about Sullair when he sold or purchased the securities of the company. The corporation brought suit against Hoodes to recover the profits Hoodes made on these trades. Who wins? Sullair Corporation v. Hoodes, 672 F.Supp. 337, Web 1987 U.S. Dist. Lexis 10152 (United States District Court for the Northern District of Illinois)