A federal judge dismissed insider trading charges against HDNet C...
A federal judge dismissed insider trading charges against HDNet Chairman Mark Cuban but gave the SEC another 30 days to amend its complaint and file again. The SEC alleged that Cuban dodged $750,000 in losses on his investment in…
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Mamma.com because he sold his shares based on confidential information that the company would soon make a move that would dilute shareholders’ value (CD Nov 20 p13). “Cuban cannot be held liable under the misappropriation theory of insider trading liability, even accepting all well-pleaded facts as true and viewing them in the light most favorable to the SEC,” Judge Sidney Fiztwater wrote. If the SEC can show in 30 days that Cuban “undertook a duty, expressly or implicitly, not to trade on or otherwise use material, non public information” about the event that triggered the charges, then the case can proceed, the judge wrote. Otherwise it will be dismissed with prejudice.