Celebrity News

Mark Cuban Denies Insider Trading Charges
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Mark CubanGazillionaire entrepreneur Mark Cuban denies promising to keep confidential information about an Internet search company hours before selling its stock in 2004.

The Securities and Exchange Commission’s insider trading lawsuit, filed yesterday in federal court in Dallas, said Cuban broke the vow after speaking by phone with Mamma.com’s CEO in 2004. Cuban became angry after learning in the call that the company planned to sell shares below the trading price, the SEC said. That same day, he arranged the sale of his 6.3 percent stake.

“There was no agreement to keep information confidential,” Cuban said today on his blog. Mamma.com’s former CEO Guy Faure has said he had no recollection of the comments, according to Cuban. “The SEC knows this — they have the transcript, yet they brought the case anyway. Why?” Cuban asked.

  
What
Where


Cuban is the most prominent US individual targeted for alleged insider trading since the SEC sued Martha Stewart in 2003. Cuban has accused the agency of a “gross abuse of prosecutorial discretion,” and vows to fight the charges.

The FEC lawsuit says that in late June 2004, Cuban spoke by telephone to Mamma.com’s chief executive officer and promised to keep the content of the conversation secret. During the almost nine minute call, Cuban learned the company planned a private investment in public equity offering, known as a PIPE.

According to the SEC complaint, Cuban became very upset and angry during the conversation, and said, among other things, that he did not like PIPEs because they dilute the existing shareholders,” driving down the value of their stock. At the end of the call, Cuban told the CEO, “Well, now I’m screwed. I can’t sell,” the SEC reported.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

RELEVANT JOBS

Staff Attorney

USA-VA-Fairfax

The Staff Attorney is responsible for managing the Fund’s delinquent contribution and withdraw...

Apply now

Associate Attorney

USA-TX-Sugar Land

Civil Litigation Firm in Sugar Land, TX. is seeking an attorney with 2 - 5 years litigation exp...

Apply now

Second Year Litigation Attorney

USA-CA-Sacramento

SECOND YEAR LITIGATION ATTORNEY   Cook Brown, LLP, a Sacramento boutique labor & employme...

Apply now

Associate Attorney - New Orleans

USA-LA-New Orleans

Slocumb Law Firm, LLC, is a national personal injury law firm. This is an excellent opportunity for ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Personal Injury Litigator

USA-VA-Fairfax

Northern Virginia office of our client is seeking a personal injury litigator with 4+ years of stron...

Apply Now

Associate Attorney

USA-CA-Larkspur

Larkspur office of our client seeks an associate attorney with 4-6 years of experience/background pr...

Apply Now

Associate Attorney

USA-MI-Bloomfield Hills

Bloomfield Hills office of a BCG Attorney Search Top Ranked Law Firm seeks an associate attorney wit...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top