Cuban has been found not guilty of insider trading. Closing arguments for the federal case were made on Tuesday after a three-week trial, and jury deliberations started this morning, leading to the decision to acquit Cuban.
This scandal could have potentially portrayed him in a shady dealing that is uncharacteristic of this smart investor.
The Securities and Exchange Commission filed a civil lawsuit against Cuban for violating securities laws in 2004 when he sold his six-percent shares worth $7.9 million of the Montreal, Canada-based search-engine company, Mamma.com, Inc. (now known as Copernic, Inc.), without making the market status public knowledge, after CEO Guy Fauré disclosed to him inside information.
While Fauré stated via video that Cuban, as the company’s largest stockholder, would not reveal that pertinent piece of information, Cuban in his defense testified that he did not agree to keep it on the down low.
The lowdown was that if the case sided with the SEC, who sought $750K in losses, then Cuban would have owed as much as $2.5 million, in part to repay his stock profits. However, that would not have set the billionaire too far back, as he still reaps revenue from his current ownerships of the Mavericks’ franchise, in addition to HDNet that he founded, as well as Landmark Theatres.
The nine-member jury included two men and seven women, including a female fan of ABC’s Shark Tank (in which Cuban is a judge of entrepreneur hopefuls) and resident of Rockwall, Texas, who previously served on a jury that acquitted a defendant of a criminal case.
This is wonderful news for us fellow MFFL (Mavs Fans for Life), as we anticipate the Mavericks’ tipoff at the Indiana Pacers tonight.