Inside trading and Federal securities Laws for Inside Trading

Manny works for Medivac. Medivac is a manufacturer of spinal surgical  
equipment.  Medivac is in preliminary talks with Medtronic to merge with
  Medtronic.  Medtronic is the leader in spinal surgical equipment.  Manny calls
 his brother Mitchell on Monday.  Manny tells Mitchell to purchase shares in
  Medivac as the proposed merger will be announced on Wednesday.  Manny purchases 
$5 million dollars in Medivac shares.  The merger is announced and Medivac stock
 soars from $5 dollars to $50 dollars.  Did Manny violate federal securities
 aws? If so, what law and why? Your answer must be between two and four pages in
 length, double spaced, with 12-point Times New Roman font.