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Donald Hoodes was the CEO of the Sullair Corporation. As an officer of the corporation, he...

Donald Hoodes was the CEO of the Sullair Corporation. As an officer of the corporation, he was regularly granted stock option to purchase stock of the company at a discount. On July 20, 1982, Hoods sold 6,000 shares of Sullair common stock for $38,350. On July 31, 1982, Sullair terminated Hoodes as CEO. On August 20, 1982 Hoodes exercised an option to purchase 6,000 shares of Sullair stock. Hoodes paid $18,000 for the stock at a time when the stock would have sold for $27,000. Hoodes did not possess any inside information. The corporation sued Hoodes to recover the profit made on the trades. Has Hoodes violates Sec. 16(b) of the 1934 Act? Explain.
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