Jury finds Mark Cuban did not commit insider-trading

Jury finds Mark Cuban did not commit insider-trading

Credit: Stewart F. House/Getty Images

Mark Cuban (2nd L) leaves the Earle Cabell Federal Building and Courthouse with his attorney Stephen Best (C) on September 30, 2013 in Dallas, Texas. Cuban was expected to testify in the government's insider-trading case against him.

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by Associated Press

WFAA

Posted on October 16, 2013 at 2:46 PM

Updated Wednesday, Oct 16 at 2:55 PM

UPDATE 2:47 p.m.: Jurors say billionaire Mark Cuban did not commit insider-trading when he sold his shares in an Internet company in 2004 after learning of a development that would dilute the value of his investment.

The jury in federal court found that the SEC failed to prove several key elements of its case, including that Cuban traded on nonpublic information.

The nine-member jury deliberated for about four hours.

The Securities and Exchange Commission accused Cuban of using inside information to sell $7.9 million of stock in Mamma.com after he learned confidentially of a stock offering that would send the share price down.

Cuban testified that he never agreed to keep information about the stock deal private and told the company that he would sell his shares.


EARLIER: DALLAS (AP) — Jury deliberations are expected to begin in federal court in Dallas in the insider trading trial of billionaire Dallas Mavericks owner Mark Cuban.

The Securities and Exchange Commission accuses Cuban of using inside information to dump millions of dollars' worth of stock. On Tuesday, a government lawyer said Cuban had an unfair advantage when he dumped $7.9 million in shares of an Internet company.

One of Cuban's lawyers argued that the government was twisting evidence and its case depended on an unreliable witness who did not testify in person.

The dispute concerns Cuban's actions in 2004 regarding Mamma.com Inc., a Canadian Internet search engine. The company's CEO had told Cuban about a pending stock deal.

Cuban had testified that he never agreed to keep information about the stock deal private.

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