Eric Torbenson of the Dallas Morning News reports:
Dallas Mavericks owner Mark Cuban had a turnover in federal court Tuesday as an appeals panel sent his insider trading case back for trial.
The 5th U.S. Circuit Court of Appeals reversed a lower court’s dismissal of a Securities and Exchange Commission suit against the billionaire. The decision doesn’t mean the SEC wins outright, but simply that the issues need to get further hearing and the suit is back on.
The government contends Cuban broke insider trading rules by selling his stake in search engine company Mamma.com after learning of the company’s plan to sell a piece of itself to investors, which would dilute Cuban’s holdings. The stock sale allowed Cuban to avoid an estimated $750,000 in losses…
And a countersuit filed by Cuban that alleges the SEC brought the case against him in bad faith continues regardless of Tuesday’s ruling. Cuban wants the government to pay his legal fees for pursuing a case out of bias rather than legal merit, his own suit says.
