According to this article on CNN.com, Dallas Mavericks owner Mark Cuban has been charged with Insider Trading based on his sale of Mamma.com stock in 2004. Mamma.com is, among other things, an internet
Mark Cuban
search engine. The civil complaint from the SEC alleges Cuban was informed that Mamma.com was going public and four hours thereafter he sold 600,000 shares of the company’s stock. Following the IPO’s announcement, the stock fell over 9% and saved Cuban from losses in excess of $750,000.
These are very serious charges against Cuban and could certainly have an impact on his attempt to purchase the Chicago Cubs from current owner Sam Zell. Cuban has always been viewed as somewhat of a loose cannon. Given his involvement in the tech sector (long targeted by the SEC for insider trading), his unpredictability and his public persona it’s not surprising that allegations such as these have been raised.
Despite seemingly infinite wisdom, The Guru cannot foretell the outcome of this story. Updates will be forthcoming as they are available.
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