Judge dismisses insider trading suit against Cuban

Published July 17, 2009 at 5:21 p.m.

Here's part of the Associated Press story:

DALLAS -- A federal judge on Friday dismissed a civil insider trading lawsuit against Dallas Mavericks owner Mark Cuban.

While granting Cuban's motion, U.S. District Judge Sidney A. Fitzwater gave the Securities and Exchange Commission 30 days to file an amended complaint.

The SEC alleged Cuban was involved in insider trading when he sold shares in an Internet search engine company, Mamma.com Inc., after receiving confidential information about a private offering in 2004.

The SEC said the billionaire NBA owner avoided a loss of $750,000 by selling his 600,000 shares, which represented a 6.3 percent stake in the company.

In his 35-page ruling, Fitzwater wrote that the SEC didn't accuse Cuban of promising not to trade based on the confidential information he received. Thus, the commission could not hold him liable for illegal insider trading, the judge wrote.

Cuban tweeted this around 11 a.m.: Its been a great day so far , and its only going to get better ! Back to Dallas to see the Fam !!

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