Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Tuesday, September 21, 2010

Fifth Circuit Allows SEC's Insider-Trading Charges Against Cuban to Go Forward

The Fifth Circuit Court of Appeals reversed the district court and reinstated the SEC's insider trading charges against Dallas Mavericks owner Mark Cuban.  The SEC alleges that Cuban sold his shares in Mamma.com after he learned from the CEO that the company planned to offer new issues.  Cuban argued that although the CEO asked him to keep the information confidential, Cuban did not promise not to sell his shares.  The appeals court said that more information was necessary, but it was at least plausible that both parties understood that no trading should take place.  Cuban has aggressively defended this litigation, including litigation against the SEC, and his attorney indicated they might appeal the 5th Circuit's decision.  WSJ, Court Reverses Mark Cuban Insider-Trading Case Ruling

http://lawprofessors.typepad.com/securities/2010/09/fifth-circuit-allows-secs-insider-trading-charges-against-cuban-to-go-forward.html

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