The Securities and Exchange Commission filed a civil lawsuit against Dallas Mavericks owner and HDNet founder Mark Cuban on Monday in U.S. District Court for the Northern District of Texas.

The lawsuit accuses the outspoken billionaire of insider trading after he sold 600,000 shares in Mamma.com stock upon learning they would sell below their current market price. The SEC alleges Cuban used the confidential information to avoid losses in excess of $750,000.

Within hours of receiving the tip, according to the complaint, Cuban instructed his broker to sell his entire stake in the company. When the offering was publicly announced, Mamma.com’s stock price opened at $11.89, down $1.215 or 9.3 percent from the previous day’s closing price, according to the SEC.

“As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential,” said Scott W. Friestad, Deputy Director of the SEC’s Division of Enforcement. “Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares. It is fundamentally unfair for someone to use access to nonpublic information to improperly gain an edge on the market.”

In a statement posted on the Dallas Mavericks owner’s blog, blogmaverick.com, attorney Ralph C. Ferrara said the 50-year-old Cuban planned to fight the suit.

“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,” Ferrara said. “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.”

Cuban has become a pivotal player in the mixed martial arts world since 2007, as his HDNet channel airs broadcasts for a number of promotions, including Strikeforce, Affliction, Maximum Fighting Championship, Dream and M-1 Global. He vowed to fight to clear his name.

“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 released on his blog. “The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”

Cuban, who launched HDNet in September 2001, could also face criminal prosecution at some point.

view original article >>
Report here if this news is invalid.

Related News

Stream or download MMAjunkie Radio #2371 with Ray Longo and Aspen Ladd

  • 26 days ago
  • 2 views

Stream or download Thursday’s edition of MMAjunkie Radio with guests Ray Longo and Aspen Ladd.Filed under: News, Radio, UFC read news >>

Trading Shots: Did Donald Cerrone take unnecessary punishment against Jorge Masvidal?

  • 24 days ago
  • 83 views

In this week’s Trading Shots, should Donald Cerrone have been stopped after the first round at UFC on FOX 23, either by the referee or by his own coaches? Ben Fowlkes and Danny Downes debate.Filed un read news >>

Conor McGregor Intends to Settle Up with Vegas Commission and Get Boxing License | MMAWeekly.com

  • 23 days ago
  • 8 views

Backtracking on his intended opposition to the Nevada Athletic Commission's sanctions for a press conference fracas, Conor McGregor plans to settle up. read news >>

Stream or download MMAjunkie Radio #2373 with UFC Fight Night 106's Kevin Lee

  • 22 days ago
  • 2 views

Stream or download Monday’s edition of MMAjunkie Radio with guest Kevin Lee.Filed under: News, Radio, UFC read news >>

Stream or download MMAjunkie Radio #2376 with AXS TV Fights CEO Andrew Simon

  • 19 days ago
  • 2 views

Stream or download Thursday’s edition of MMAjunkie Radio with guest Andrew Simon.Filed under: AXS TV Fights, News, Radio read news >>

Trading Shots: As Super Bowl participants face political backlash, UFC included on boycott lists

  • 17 days ago
  • 104 views

In this week’s Trading Shots, the UFC is on some Trump-related boycott lists, and Super Bowl participants can’t avoid questions about their support for the U.S. President. Is there a case for keeping read news >>

MMAjunkie reader predictions: Make your picks for UFC 208 in Brookyln

  • 16 days ago
  • 24 views

We want your predictions for Saturday’s UFC 208 event in Brooklyn, N.Y.Filed under: News, UFC read news >>

Stream or download MMAjunkie Radio #2378 with former UFC champ Miesha Tate

  • 15 days ago
  • 2 views

Stream or download Monday’s edition of MMAjunkie Radio with guest Miesha Tate.Filed under: News, Radio, UFC read news >>

A close reading of the Nevada commission's statement on its newest member

  • 12 days ago
  • 18 views

The newest appointee to the Nevada State Athletic Commission happens to be an employee of the casino empire owned and operated by the Fertitta brothers, who still own a piece of the UFC. Is that a co read news >>

Stream or download MMAjunkie Radio #2382 with Alex Garcia and Jarred Brooks

  • 11 days ago
  • 1 views

Stream or download Friday’s edition of MMAjunkie Radio with guests Alex Garcia and Jarred Brooks.Filed under: News, Radio, UFC read news >>