Reality TV’s Mark Cuban, of ‘Shark Tank’ also the owner of professional basketball team Dallas Mavericks, lost a bid to throw out a U.S. regulator's civil fraud lawsuit accusing him of insider trading on Tuesday March 5th, 2013.
U.S. District Judge Sidney Fitzwater in Dallas said the U.S. Securities and Exchange Commission may continue to press its more than four-year-old case against Mark Cuban.
In the November 2008 lawsuit, the SEC accused Cuban of selling his 6.3 percent stake in Mamma.com Inc for about $8 million in June 2004 after learning that the search engine company had been planning a stock offering.According to previous reports, “On November 17, 2008, it was reported that the U.S. Securities and Exchange Commission (SEC) filed a civil suit against Mark Cuban relating to alleged insider trading in the shares of Mamma.com, now known as Copernic. A stock dilution occurred shortly after a trade in June 2004, giving hints of inside knowledge at the time of the trade, and Cuban allegedly was saved from a loss of $750,000. The SEC claims that Cuban ordered the sale of his holdings in Mamma.com after he had been confidentially approached by the company to participate in a transaction likely to dilute shares of current shareholders. Cuban disputes the charges, saying he had not agreed to keep the information secret. On his blog, Cuban contended the facts were false and that the investigation was "a product of gross abuse of prosecutorial discretion".The 54-year-old Cuban is worth $2.4 billion, according to Forbes magazine.Do you think Mark Cuban is being unfairly accused of insider trading? Leave a comment below and let us know!