S.E.C. Accuses Mark Cuban of Insider Trading

[Scurrilous]

<snip>

"The Securities and Exchange Commission said Monday that it had charged Mark Cuban, the billionaire Internet entrepreneur who owns the Dallas Mavericks basketball team, with insider trading for selling 600,000 shares of an Internet search engine company.

The S.E.C. said Mr. Cuban sold the stock in the company, Mamma.com, based on nonpublic information about an impending stock offering.

The commission’s complaint, filed in the Federal District Court for the Northern District of Texas, asserted that Mamma.com invited Mr. Cuban to participate in the stock offering in June 2004 after he agreed to keep the information confidential. The complaint further asserted that Mr. Cuban knew that the offering would be conducted at a discount to the prevailing market price and that it would be dilutive to existing shareholders.

Within hours of receiving this information, the S.E.C. alleged
s in its complaint, Mr. Cuban called his broker and instructed him to sell his entire position in the company.

When the offering was publicly announced, the commission said, Mamma.com’s stock price opened at $11.89, down $1.215 or 9.3 percent from the prior day’s closing price of $13.105. The S.E.C. asserted that Mr. Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering."

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[SteveM]

1. S.E.C.? Isn't Cuban in the jurisdiction of the Big 12? (nt)

[joeybee12]

2. couldn't have happened to a nicer guy n/t

[Condem]

3. Guess it won't be Cuban's Cubbies.