Mark Cuban Goes Another Round With SEC Over Insider Trading Claims
On November 17, 2008, the Securities and Exchange Commission announced that it had filed insider trading charges against Mark Cuban in the United States District Court for the Northern District of Texas, alleging that the billionaire owner of the NBA’s Dallas mavericks franchise had violated the antifraud provisions of the federal securities law when selling his entire stake in the formerly publicly traded company Mamma.com.
Since that formal complaint was filed nearly five years ago, the case has moved forward with spits and starts, traveling through three different courthouses. In 2009, a judge dismissed the lawsuit, but the United States Court of Appeals for the Fifth Circuit reinstated it a year later. While Cuban attempted to delay the trial to accommodate what the SEC called his “Hollywood production schedule,” the regulator agency’s pursuit of the insider trading charges has finally culminated. The trial will open Monday in a federal courtroom in Dallas.
Cuban, whose courtside antics and appearances on the reality show Shark Tank has brought an air of celebrity to the SEC’s efforts to make cases of insider trading a renewed focus for the regulatory agency. Despite the relatively small stakes for Cuban, whose net worth of approximately $2.5 billion can easily swallow the $2 million fine, the SEC is attempting to show a stronger side.