SEC Files Brief in Cuban Insider Trading Case

The SEC has posted at its website its recently filed reply brief in SEC v. Cuban, its appeal to the Fifth Circuit of the district court's opinion that Cuban did not violate Rule 10b-5 when he sold his Mamma.com stock after the CEO told him he was being given information about its plans for an offering in confidence.  According to the SEC's brief, "[t]he key question ...is whether an agreement to keep information confidential encompasses an agreement not to trade on the information, such that trading without prior disclosure is deceptive."  The SEC says the answer is clearly yes.