Mark Cuban Charged with Insider Trading
The Drudge Report has a headline today indicating that Mark Cuban, owner of the Dallas Mavericks, may have been charged with insider trading.
Update: The WSJ is reporting that the SEC filed insider trading charges against Mark Cuban for allegedly selling his entire 6% stake in Mamma.com after learning they were raising money through a private investment in a public entity, PIPE.
This may be linked with Cuban’s Sharesleuth.com website in which they investigate suspect companies and shine a light on their dealings. Cuban has promised to make some actual investments based on the information discovered on that site. The legal issues involved insider trading and non-publicly available information was discussed on numerous sites but many believed it was legally OK, albeit ethically gray and clearly taking advantage of a loophole.
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