May 25, 2009

Cuban’s lawyers seek suit dismissal

Lawyers for Dallas Mavericks owner Mark Cuban say they want an insider trading case against the billionaire entrepreneur dropped.

A hearing is set for Tuesday in U.S. District Court in Dallas on a motion by Cuban's attorneys to dismiss a civil suit filed by the U.S. Securities and Exchange Commission, accusing him of trading on insider information on a Canadian company called in 2004, The Dallas Morning News reported.

U.S. regulators say Cuban sold shares based on confidential information about plans by to sell additional shares in a private stock offering, thus allegedly dodging a $750,000 loss.

The newspaper said Cuban's attorneys will concentrate during Tuesday's hearing on their contention that the investor didn't have a fiduciary duty abstain from trading on the information.

Law professors supporting Cuban have said the SEC's suit rests on a regulation that is an invalid exercise of the agency's rule-making authority, but the SEC contends Cuban's stock sales were shameless, the Morning News said.