The U.S. Securities and Exchange Commission has charged Dallas Mavericks owner Mark Cuban with insider trading.
The government alleges that in June, 2004 Cuban sold 600,000 shares of Canadian search engine company Mamma.com after he learned it would be making a stock offering. The management of Mamma.com invited Cuban to take part in the stock offering after he agreed to keep it a secret, according to the SEC.
But the government says Cuban knew the stock price would fall when the offering was publicly announced. The same day he learned about the impending offering, the government says, Cuban told his broker to sell all of his shares in Mamma.com.
The SEC says when the stock offering was publicly announced, Mamma.com’s stock price dropped more than 9 percent from the previous day’s closing price. As a result, the SEC says, Cuban avoided losing more than $750,000.
source: cbs11tv.com
