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Cuban’s lawyers seek suit dismissal

May 25, 2009

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 Mamma.com in 2004, The Dallas Morning News reported.

U.S. regulators say Cuban sold shares based on confidential information about plans by Mamma.com 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.


Source: upi



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