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Court revives Mark Cuban insider trading case
Reuters ^ | 9/21/2010 | Jonathan Stempel

Posted on 09/22/2010 4:51:18 PM PDT by mojito

Mark Cuban, the outspoken billionaire owner of the Dallas Mavericks basketball team, was ordered by a U.S. federal appeals court on Tuesday to face a civil fraud lawsuit accusing him of insider trading.

The U.S. Fifth Circuit Court of Appeals said a federal district court in Dallas erred in dismissing the case brought by the U.S. Securities and Exchange Commission against Cuban. It sent the case back to that court for further proceedings, which could lead to a trial.

In its lawsuit, the SEC accused Cuban of selling his 6.3 percent stake in Mamma.com in June 2004 after learning the Montreal-based search engine company was planning a stock offering. It said Cuban's sale allowed him to avoid more than $750,000 of losses.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Crime/Corruption; Extended News; Government
KEYWORDS: insidertrading; mammacom; markcuban; sec
Cuban learned directly from the CEO of Mamma that the company was going to announce a private placement that would dilute the value of the stock. So he sold his stake, based on information that was not known publically. If that's not insider trading, the law has no meaning.

This is a heck of a lot worse than what Martha did.

1 posted on 09/22/2010 4:51:23 PM PDT by mojito
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To: mojito

Mark Cuban is also a major Dem supporter.


2 posted on 09/22/2010 4:59:18 PM PDT by Fred Hayek (FUBO! I salute you with the soles of my shoes!)
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To: Fred Hayek

He’s a huge and obnoxious lib.

Can’t say I feel too sorry for him.


3 posted on 09/22/2010 5:01:03 PM PDT by mojito
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To: mojito

If he deserves it, he deserves it.

I can’t help but reflect on this administration and the Left in general though, who have a penchant for wanting to take down the wealthy.

Contrast the Black Panthers threatening voters, no problem there.

Cuban, better take that threat to society down right now.


4 posted on 09/22/2010 5:07:02 PM PDT by DoughtyOne (All hail Prince Skid-mark, Barack Hussein Obama, constantly soiling himself and our nation.)
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To: mojito

I would LOVE for Mark Cuban to get his JUST DUE!!


5 posted on 09/22/2010 5:21:58 PM PDT by Ann Archy (Abortion......the Human Sacrifice to the god of Convenience.)
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To: mojito

I’d really enjoy seeing this jerk do a little time at the Iron Bar Motel. He’s a liberal big mouth.


6 posted on 09/22/2010 5:33:09 PM PDT by FlingWingFlyer (I don't know which is dumber. A pert or an expert.)
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To: mojito

Pardon my ignorance, but is a private placement the same thing as a stock split? I thought I read an article when this whole thing started saying he was in trouble over a stock split.


7 posted on 09/22/2010 6:34:05 PM PDT by camerongood210
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To: Fred Hayek

Plus he’s a big time Truther.


8 posted on 09/22/2010 6:37:14 PM PDT by dfwgator (Rangers Magic Number - 5)
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To: Fred Hayek
Mark Cuban is also a major Dem supporter.

That makes what he did much worse.

I hope they throw the books at him.

9 posted on 09/22/2010 6:45:28 PM PDT by Doe Eyes
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To: camerongood210

A private placement is the sale of newly created shares directly to a private investor for a set price; they are not purchased on an exchange.

A stock split occurs when the value of a company’s stock rises to such a level that the company grants holders of its shares two shares for every one they hold, in order to make the shares more affordable to new investors.

Usually, a stock split is a good thing for investors; it means the company is doing well and the value of its shares are rising. A private placement can mean that the company is having trouble raising money on the public trading of its stock. It often means that a company is in trouble.


10 posted on 09/23/2010 8:58:46 AM PDT by mojito
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