The Dallas Morning News
July 17, 2009
[efoods]A Dallas federal judge has tossed out the Securities and Exchange Commission’s insider trading suit against Dallas businessman Mark Cuban, dealing a surprising defeat to the regulator in one of its highest-profile civil actions.
Chief Judge Sidney Fitzwater said in a 35-page ruling released Friday that the SEC had failed to prove that Cuban, who owns the Dallas Mavericks, “undertook a duty of non-use of information required to establish liability under the misappropriation theory of insider trading.”
The dismissal gives the SEC 30 days to re-file its complaint against Cuban. The original complaint alleged Cuban used non-public information about a stock offering for Mamma.com Inc. and sold shares to avoid losses using that information.