SEC Claims Cuban Engaged in Insider Trading in '04
From the Securities and Exchange Commission this morning: "The Securities and Exchange Commission announced that it filed insider trading charges today against Dallas entrepreneur Mark Cuban in the U.S. District Court for the Northern District of Texas." The suit -- which can be read in its entirety here -- alleges that in June 2004, the owner of the Dallas Mavericks ditched "his entire 600,000 share position in Mamma.com on the basis of material, non-public information concerning an impending PIPE (private investment in public equity) offering by the company." Among other things sought by the feds: the $750,000 Cuban allegedly saved by selling before the PIPE was offered and a civil penalty. --Robert Wilonsky
Update: Cuban responds to the SEC's filing on BlogMaverick: "I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”
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