SEC Charged Mark Cuban with Insider Trading (2008)
Key takeaways
- The Securities and Exchange Commission has charged Dallas Mavericks owner and internet entrepreneur Mark Cuban with insider trading.
- "As we allege in the complaint, Mamma.com entrusted Mr.
- Cuban has responded to the complaint and posted a brief statement on his blog Monday afternoon denying the allegations and vowing to fight the charges.
The Securities and Exchange Commission has charged Dallas Mavericks owner and internet entrepreneur Mark Cuban with insider trading.
The complaint claims that in 2004 Cuban learned of a private offering of Mamma.com (now known as Copernic) that would decrease the value of his 600,000 shares. It says he then sold off his stake and as a result, reportedly saved $750,000.
"As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential. Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares," said Scott W. Friestad, deputy director of the SEC's Division of Enforcement."It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market."