SEC Charges Mark Cuban With Insider Trading Over Sales Of Mamma.com Shares

The SEC has charged internet entrepreneur and NBA Dallas Mavericks owner Mark Cuban with insider trading over shares of Mamma.com. The high-profile complaint—the press release is highlighted on SEC.gov at the moment—alleges that in June 2004, Cuban sold 600,000 shares of the search engine company's stock within hours of receiving confidential information that the company was about make a stock offering that would dilute existing holdings. The stock went down after the offering was announced publicly; the government alleges that Cubvan "avoided losses" of more than $750,000 by selling early. The suit has been filed in the U.S. District Court for the Northern District of Texas (full pdf).

No matter how it ends, at the very least, the charges will make Cuban's effort to buy the Chicago Cubs even more difficult. More to come.

More to come.

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