Read the SEC’s official press release here. The charges are related to search engine mamma.com. More as it becomes available.
UPDATE:
Cuban has a brief post on his blog regarding the situation:
I wish I could say more, but I will have to leave it to this, and let the judicial process do its job.
November 17, 2008
RE: SEC Civil Action in the United States Districtfor the Northern District of Texas, Dallas Division
Mark Cuban today responded to a civil complaint filed by the United States Securities and Exchange Commission in the United States District for the Northern District of Texas, Dallas Division. In its complaint, the Commission charges that Mr. Cuban engaged in violations of the federal securities laws in connection with transactions in the securities of Mamma.com Inc.
This matter, which has been pending before the Commission for nearly two years, has no merit and is a product of gross abuse of prosecutorial discretion. Mr. Cuban 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.
Mr. Cuban stated, “I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”
This whole situation has the potential to get very messy. A member of Cuban’s legal team has provided an email written from an S.E.C. lawyer, accusing Cuban of being unpatriotic for helping fund the documentary Loose Change. For those unfamiliar, it is a movie which claims President Bush and his staff had a role in the September 11th attacks.
Cuban is going to fight the S.E.C. on these chargers. I think he is going to fight them hard. He could have just payed the approximate $750,000 that he illegally saved in the matter and a penalty but he has chosen to fight the charges.
That’s not good.
I understand insider trading is unethical… but I think too big a deal is made out of it. If you find out stocks you own are about to plummet before the information has gone public, you can’t tell me you wouldn’t sell too.
Right. Especially at the expense of your shareholders — the people who were likely keeping you afloat in the first place. I bet your tune would be a lot different had you lost 300G’s in mamma.com.
Yes I agree with you!