Tech Billionaire Mark Cuban Heads to Trial Over Alleged Insider Trading
Fiery tech entrepreneur Mark Cuban is about to feel some heat of his own. The outspoken owner of the Dallas Mavericks basketball team is set to go to trial today in U.S. District Court in Texas over allegations of insider trading.
According to the SEC, Cuban sold his 600,000 shares of Montreal-based Mamma.com Inc. in 2004 after allegedly being informed by the company's chief executive that it was planning an equity offering that could dilute the value of Cuban's shares. The SEC is seeking to recoup any gains Cuban received as a result of the sale, impose civil fines and to bar Cuban from similar alleged misconduct.
The SEC says insider trading has become a "high priority" for the group's enforcement program. Over the last three years, the SEC has filed more insider trading actions -- 168 total -- than in any three-year period in the agency's history.
Cuban is expected to testify at the trial, which should last several days at least. Cuban did not immediately respond to an email seeking comment.
A tech entrepreneur, Cuban launched a hardware and software integration company called MicroSolutions, which he sold to CompuServe in 1990. Within five years, he co-founded web radio company Broadcast.com, which Yahoo Inc. acquired in 2000 for nearly $6 billion in stock. In addition to owning the Mavericks, Cuban, 55, is one of the "sharks" on ABC's popular reality series Shark Tank.