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Cuban Acquitted of Insider Trading Charges

Mavs Owner Was Accused of Illegally Profiting From Sale of Internet Start-up Stock 10/16/2013 4:46 PM Eastern

Dallas Mavericks owner and AXS TV chairman Mark Cuban was found not guilty of insider trading charges Wednesday, ending a nine-year odyssey through the federal court system for the outspoken billionaire

Cuban, who Forbes magazine estimates is worth about $2.5 billion, was accused of selling his entire 6% stake (600,000 shares) of Canadian Internet startup Mamma.com in 2004 after learning about a private stock offering the company was planning from company executives. According to the initial suit, the Securities and Exchange Commission alleged Cuban avoided about $750,000 in losses by selling the shares ahead of the private offering. Private stock offerings by public companies generally result in a short-term drop in the stock price.

The SEC first brought the suit in 2008 and reinstated it in 2010 after the SEC appealed.

According to several reports, the jury in Dallas federal court deliberated for about four hours before returning the not guilty verdict. Cuban had been facing several million dollars in fines, but no jail time, if he were convicted.

September