The Case of the Underwater Option "Miriam Schulman"

Was the ethical dilemma that the company was involved in also illegal? If not, why should anyone within the company be concerned?
Ethically I do not believe MoniMed was in the wrong. Legally the company was not involved in any illegal interactions. I will outline the reasons below:
Mr. Grantz, CEO of MoniMed made the decision to withhold information from the company to prevent an employee exodus. Ethically Mr. Grantz withheld the information to protect what was left of the company in hopes the new staff could turn the bad fortune around. …