Federal regulators have charged Dallas Mavericks owner Mark Cuban with insider trading for allegedly using confidential information on a stock sale to avoid more than $750,000 in losses.I think one hellacious lawsuit at a time is enough for anyone.
The Securities and Exchange Commission filed a civil lawsuit against Cuban on Monday in federal court in Dallas. The agency says that in June 2004, Cuban was invited to get in on the coming stock offering by Mamma.com Inc. after he agreed to keep the information private.
The SEC says Cuban knew the shares would be sold below the current market price, and a few hours after receiving the information, told his broker to sell all shares in the search engine company.
(thanks to Jason at IIATMS and reader Doug Christy for the near simultaneous heads up emails)
UPDATE: A couple friends of mine have already speculated that this smells like a smear job. I'd agree if this was simply a "sources say Cuban is in trouble with the SEC" kind of story, but this is an actually-filed lawsuit. It takes a while to put one of those together and to get the clearances to pull the trigger, and it's not like anyone in baseball has the kind of juice to get that ball rolling in order to squash Cuban.
Not that baseball is some mere bystander here. My guess: the bold talk from last week saying that Cuban-as-Cubs-owner will "never happen" came from someone who was privy to the investigation and imminent filing and thus felt pretty free to say something that, in the absence of this lawsuit, would be pretty reckless.