Mark Cuban Charged with Insider Trading on Search Engine Shares
November 17, 2008 by Pablo Palatnik
Mark Cuban, mostly known for being the outspoken owner of the Dallas Mavericks and maybe an internet guru from his billion dollar sale of his company to Yahoo, has been charged with Insider Trading by the SEC for “acting on nonpublic information and selling shares of Mamma.com to avoid more than $750,000 in losses, the SEC alleged,” reports Reuters.
“According to the SEC, Mamma.com invited Cuban to participate in a stock offering that would be conducted at a discount to the market price after he agreed to keep the information confidential.
However, within hours of receiving information, Cuban called his broker and told him to sell his entire position in the company, the SEC alleged.
When the offering was publicly announced, Mamma.com’s stock price dropped 9.3 percent from the prior day’s closing price.”
This news may actually bring some light to Momma.com which…who knows about? This search engine looks like its doomed to fail and Im sure Mark Cuban saw that right away.
Get more information on the Mamma.com CNIC Stock Here.
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Comments (2)
That’s one of the first questions coming up in today’s news, reported by the WSJ’s Kara Scannell, that Dallas Mavericks owner Mark Cuban faces insider-trading charges related to the site. Mamma.com is a Canadian search
v. : 1. The Commission charges Defendant Mark Cuban (“Cuban”) with committing securities fraud by engaging in illegal insider trading. Despite agreeing in June 2004 to keep material, non-public information about an