Mark Cuban is Going to Court

by May 25, 2009
15

With his team’s season done, it’s time for Cuban to face those insider trading charges: “Mark Cuban’s lawyers are about to get their first day in court to convince a federal judge that an insider trading lawsuit against their client should be thrown out. A hearing on a motion to dismiss the civil case is scheduled for Tuesday. In November, the U.S. Securities and Exchange Commission accused Cuban of trading on insider information in a Canadian company called Mamma.com in 2004. The SEC says Cuban sold his shares in the company after receiving confidential information about a company plan to sell additional shares in a private offering. Cuban dodged a $750,000 loss by selling his shares, the SEC says. Cuban’s lawyers have not conceded that Cuban agreed to keep the information confidential. But Tuesday’s hearing will focus on their motion to dismiss the case based on the contention that Cuban owed no fiduciary duty not to trade on the information.”