SEC Accuses Mav's Owner of Insider Trading
Today the Securities and Exchange Commission (SEC) filed a lawsuit accusing Internet entrepreneur turned Dallas Mavericks owner of insider trading. At issue is a 4-year-old stock sale that Mr. Cuban has written about on his blog. The U.S. Securities and Exchange Commission alleges that Mr. Cuban avoided a $750,000 loss by selling his 6 percent stake in Momma.com, an Internet search engine company, after company executives told him confidentially about a stock offering restricted to major investors.
"It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market," said Scott W. Friestad, the SEC's deputy director of enforcement.
Cuban has flatly denied the allegations and a statement from his lawyer posted in Cuban's blog said that he would fight the civil complaint.
When company investors or executives with access to privileged information engage in insider trading, it puts other investors and shareholders at an unfair disadvantage. If you have suffered a financial loss as a result of insider trading or other corporate stock fraud, you may be entitled to compensation. A securities attorney with the Texas business litigation law firm Arnold & Itkin LLP in Houston, Texas can help you understand your rights and options you may have to claim compensation for your loss.
