The Securities and Exchange Commission will appeal a federal district court decision dismissing its insider trading case against Mark Cuban, owner of the Dallas Mavericks basketball team.
In August, the U.S. District Court for the Northern District of Texas in Dallas dismissed charges filed dismissed charges filed in November 2008 by the SEC alleging that Mr. Cuban had violated securities laws that prohibit insider trading. The SEC said Mr. Cuban illegally sold 600,000 shares of the stock of an Internet search engine company based on non-public information about the impending stock offering.
“As we alleged in our complaint, Mark Cuban violated the antifraud provisions of the federal securities laws by engaging in illegal insider trading in the securities of Mamma.com. We believe the District Court erred in dismissing our complaint and we look forward to presenting our position to the Fifth District Circuit Court of Appeals,” SEC spokesman John Nester said in an e-mail.
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