Jurors said Wednesday that billionaire Mark Cuban did not commit insider-trading when he sold his shares in an Internet company in 2004 after learning of a development that would dilute the value of his investment.
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 (U.S.) of stock in Mamma.com Inc. after he learned confidentially of a stock offering that would send the share price down. The agency wanted Cuban to repay $750000 in losses that he avoided plus pay a penalty. It was a civil lawsuit so the basketball team owner and regular on the ABC reality show Shark Tank didn’t face criminal charges.