- Geithner 'Deeply' Believes in Need for Strong Dollar
- US Cannot Be Complacent About Dollar: World Bank
- US Recovery to be Weak, Erratic: Top Fed Officials
- AIG CEO Ready to Quit over Pay Constraints: Report
- Bring on Tougher Regulation: S&P Owner
- Retail Earnings in Focus Ahead of Shopping Season
- Ponzi Proceeds: Bidding on Madoff's Toys
- Investments in Global Oil Projects to Fall Next Year: Shell
- Apple Surpasses Nokia as Top Handset Maker by Profit
- Beware of 'Trampling Effect' When Market Tops: Manager
- Gold Heading to $1150: Art Hogan
- Starbucks Brews Up Growth
- Farr: An Extended Period—No Fat Lady in Sight
- More Upside if S&P Passes This Number: Market Pro
- Murdoch Lashes Out At Google
- Fighting The Flu Vaccine Critics
- Nov. 10: Unusual Volume Leaders
- Shadow Inventory Dwarfs Loan Mods
MOST SHARED
- AIG CEO Ready to Quit over Pay Constraints: Report
- Herbalife Vs. Hedge Funds
- Apple Surpasses Nokia as Top Cellphone Maker by Profits
- China Factory Output Leaps to 19-Month Highs
- American Airlines, TPG May Invest in Struggling JAL
- Brazil's Largest Cities Hit by Blackout
- Bring on Tougher Regulation: S&P Owner
- Cramer Jeers J&J, Applauds Abbott
- Three Things the US Can Do To Stop the Dollar's Decline
Text Size 
Mark Cuban, the billionaire entrepreneur and owner of the Dallas Mavericks basketball franchise, on Monday disputed an accusation from the Securities and Exchange Commission that he profited from insider stock trading.
"I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions," Cuban said in a statement posted to his Web site. "The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”
The SEC accused Cuban of insider trading for selling 600,000 shares of an Internet search engine company prior to an impending stock offering.
 |
AP Mark Cuban, Dallas Mavericks owner. |
The Commission's complaint, filed in the U.S. District Court for the Northern District of Texas, alleges that in June 2004, Mamma.com invited Cuban to participate in a stock offering after he agreed to keep the information confidential.
Cuban knew that the offering would be conducted at a discount to the prevailing market price and that it would be dilutive to existing shareholders, the SEC said in a statement.
Cuban then told his broker to sell Cuban's entire position in the company, the SEC alleged. Mamma.com's stock price opened at $11.89 after the offering was announced, a decline of more than 9 percent.
Cuban said on his site that the matter has been pending before the Commission for nearly two years and has "no merit."
Cuban said he intends "to contest the allegations and to demonstrate that the Commission’s claims are infected by the misconduct of the staff of its Enforcement Division."
According to the SEC complaint, Cuban avoided losses in excess of $750,000 by selling his stock prior to the public announcement of the offering. (See video of Scott Cohn's report, left.)
Cuban, one of the five finalists to buy the Chicago Cubs pro baseball team, is expected to fight the charges.
Mark Cuban, 50, also owns Landmark Theaters, a large national chain dedicated to independent films, and the HDNet cable television channel.
He is one of the richest people in the world, according to Forbes magazine, which pegged his net worth at $2.3 billion as of March 2007.
In 2005, Mamma.com acquired desktop search company Copernic Technologies. In 2007, the combined company changed its name to Copernic [CNIC
Loading...
()
], which trades publicly on the Nasdaq. For a full profile of Copernic, click here.
- AP contributed to this report.
Print
Email
- Vote and suggest your own, and remember--there's a fine line between a hero and a zero.
- If you are lucky enough to have money and the time, this is a great time to see America, says CNBC's Jane Wells.
- What’s powering your microwave, fridge and computer? Part of it is fuel from Russian nuclear weapons. The NYT reports.
- One author sees lessons for you in Disney’s recent Makeover of Mickey Mouse: “Nice” doesn’t always win.
- With 123 years of history, slogans and commercials, Coca-Cola is the most recognized brand on earth.
- The opening of a virtual pet store in “World of Warcraft” could prove a cash bonanza for Activision-Blizzard.
Data is a real-time snapshot *Data is delayed at least 15 minutes