Billionaire Mark Cuban indicted for insider trading
Billionaire Mark Cuban is being hauled to court for insider trading. A federal grand jury indictment was filed against the NBA's Dallas Mavericks owner for insider trading by the US Securities and Exchange Commission.
The court where the case would be litigated is under the jurisdiction of US District Judge Sidney Fitzwater in Dallas. The charges stem from the sale by Cuban of 600,000 shares of Mamma.com Inc back in June 2004. It was alleged that he learned of an equity offering that could lower the stock price of the Internet search company's stock price. According to SEC records, the said information provided Cuban the opportunity to avoid a USD750,000 loss on his stake.
The case seeks the recoupment of illegal gains, imposition of a fine and seek a permanent injunction for similar acts/conduct imposed on Cuban.
Cuban had sought to settle the case for a small amount has been at odds with the SEC for the past five years. He is said to be worth nearly USD2.5 billion and has 1.8 million Twitter followers.