Judge dismisses SEC complaint against Cuban
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Dallas Mavericks owner Mark Cuban prevailed in his defense against insider trading allegations Friday as a federal court dismissed the Securities and Exchange Commission’s case against the billionaire.
The SEC had accused Cuban of avoiding $750,000 in losses by selling his stake in an Internet company, Mamma.com, knowing that the firm was about to issue more shares, thereby lowering the value of those held by existing investors. Cuban argued he had no legal duty not to act on the information. The SEC has 30 days to appeal the ruling.
Cuban’s investments outside sports include the HDNet television channel and a movie theater chain.
Yahoo bought his website, Broadcast.com, in 1999 for $4.7 billion. He bought the Mavericks the next year for $280 million. Forbes estimates his net worth at $2.6 billion.
The case against Cuban is among the most prominent filed against celebrities in recent history. Lifestyle maven Martha Stewart, who was found guilty in a criminal case, served prison time and separately settled with the SEC.
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