Mark Cuban won a years-long fight with the federal government Wednesday when jurors said that the billionaire basketball owner and Shark Tank investor did not commit insider trading when he sold his shares in an Internet company in 2004.
The jury in federal district court in Dallas found that the Securities and Exchange Commission failed to prove several key elements of its case, including that Cuban traded on nonpublic information.
The nine-member jury deliberated for about four hours. The trial spanned three weeks.
The SEC accused Cuban of using inside information to sell $7.9 million of stock in Mamma.com Inc. in 2004 after he learned confidentially of a stock offering that would send the share price down. The agency wanted Cuban to repay $750,000 in losses that he avoided, plus pay a penalty. It was a civil lawsuit, so the Dallas Mavericks owner and regular on the ABC reality show Shark Tank didn’t face criminal charges.
Standing outside the Earle Cabell Federal Building after the ruling, Cuban again accused the SEC of lying and mischaracterizing his words.
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