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Mark Cuban charges against SEC unfounded: source

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(Reuters) – The internal watchdog at the Securities and Exchange Commission has concluded that the accusations of investigative misconduct against the enforcement division by Dallas Mavericks basketball team owner Mark Cuban have no merit, according to a person familiar with the matter.

The SEC sued Cuban in 2008 for insider trading, alleging that he had sold his 6.3 percent stake in Mamma.com in June 2004 after learning confidentially that the Montreal-based search engine company was planning a stock offering. The SEC said Cuban’s sale allowed him to avoid more than $750,000 of losses.

The case was initially dropped in July 2009 by a federal judge who ruled that Cuban did not qualify as an insider. But last September, Cuban was ordered to face the charges by a federal appeals court, reviving the high-profile insider trading case.

Full story: Mark Cuban charges against SEC unfounded: source | Reuters.