Cuban Charged with Insider Trading?

by Dirk Diggler on Nov 17, 2008 10:51 AM CST

http://online.wsj.com/article/SB122693827604333637.html

The Securities and Exchange Commission filed insider trading charges against Mark Cuban, the outspoken owner of the Dallas Mavericks, for allegedly dumping shares in Mamma.com upon learning it was raising money in a private offering (full text of complaint).

The SEC alleges in a civil action that Mr. Cuban sold his entire 6% ownership stake on June 28, 2004, after learning that Mamma.com was raising money through a private investment in a public entity, or PIPE. The next day, on June 29, the company announced the PIPE financing and shares of the company dropped by more than 10%. By selling his stake, the SEC alleges, Mr. Cuban avoided more than $750,000 in losses.

In a PIPE transaction new shares are issued at a discount to the current trading price. An announcement of a PIPE transaction is often followed by a drop in the stock price as shareholders anticipate their stake will be diluted.

Hmm....that doesn't sound good now does it?

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Comments

hey whats that word

you called me whenever i posted something that had already been posted on a site… call yourself that ho

by zkmavz on Nov 17, 2008 11:02 AM CST reply actions

Check the time stamps dude

I'm undefeated in fights. Have I been in any? No. Thats because people know my f'ing status. Don't mess with the elite. - Miles

by Dirk Diggler on Nov 17, 2008 12:37 PM CST up reply actions

10:49am for me

10:51am for you

dude

by zkmavz on Nov 17, 2008 1:04 PM CST up reply actions

I don't see 10:49

I'm undefeated in fights. Have I been in any? No. Thats because people know my f'ing status. Don't mess with the elite. - Miles

by Dirk Diggler on Nov 17, 2008 1:22 PM CST up reply actions

Oh I see it

didn’t read the comments…

Your thing was different in that you had a fanpost when there was already a fanshot…

Whatever

I'm undefeated in fights. Have I been in any? No. Thats because people know my f'ing status. Don't mess with the elite. - Miles

by Dirk Diggler on Nov 17, 2008 1:23 PM CST up reply actions

Meh, unless he lies to the prosecution a la Martha Stewart he will be fine

And the fine won’t make him broke.

by Norsktroll on Nov 17, 2008 12:04 PM CST reply actions

Gotta love that fact that Cuban has a blog and is not afraid to use it. My theory is that the SEC wants to show that it does regulate stock trading when the public is watching and they’re using Cuban as a high profile example. We’ll probably never hear about it from the SEC after today unless Cuban uses his megaphone to call shenanighans (if my theory is true).

Signature! I don't need no stinking signature!!

by DerekSTheRed on Nov 17, 2008 12:36 PM CST reply actions