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Cuban Charged With Insider Trading
11/17/08 12:29 , Categories: News 
According to CBS 11, Mark Cuban has been charged with insider trading for dumping his stocks in a Canadian company called Mamma.com.
The charge is a civil complaint and not a criminal complaint. I guess that's a good thing, sounds to me if he loses he'll pay his fine and interests due and be on his merry way without any jail time.
According to the article, he dumped all 600,000 shares of stock when he learned from the CEO that they were going raise capital with a PIPE (private investment in public equity) offering.
You can read the complaint filed in federal court in Dallas here.
You can read the article here.
2 comments
Comment from: Tracy [Visitor]
Found a good article from an interview with a financial analyst that explains this in lamens terms:
http://myespn.go.com/blogs/truehoop/0-36-63/-Mark-Cuban-s-Going-to-Have-to-Write-a-Big-Check-.html
So yah, basically he'll have to cut a check and count himself out 1 mil. But that's no sweat for Cuban. He's loaded. But the logic makes sense...when he sold his shares, someone else bought them and lost because they had no knowledge of the PIPE. Live and learn, I suppose!
http://myespn.go.com/blogs/truehoop/0-36-63/-Mark-Cuban-s-Going-to-Have-to-Write-a-Big-Check-.html
So yah, basically he'll have to cut a check and count himself out 1 mil. But that's no sweat for Cuban. He's loaded. But the logic makes sense...when he sold his shares, someone else bought them and lost because they had no knowledge of the PIPE. Live and learn, I suppose!
11/17/08 @ 15:42
Comment from: drew [Visitor] · http://mavsfanforlife.net
Yeah, from reading the complaint and suit, sounds like they do have evidence to file with every reason. Unless Cuban has some evidence of his own that proves otherwise, he'll be paying a hefty fine.
Funny to think I sort of side with him on trying to save 750k but in the end (cause PIPE's do screw existing share holders over), it'll probably cost him twice that much, 1 million dollar fine with another million going to a lawyer.
Funny to think I sort of side with him on trying to save 750k but in the end (cause PIPE's do screw existing share holders over), it'll probably cost him twice that much, 1 million dollar fine with another million going to a lawyer.
11/17/08 @ 22:52
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