The Securities and Exchange Commission announced Monday that it had filed a civil suit against Mark Cuban, the majority owner of Sharesleuth.com. The complaint alleges insider trading in the shares of Mamma.com Inc. in June 2004.
The complaint does not involve Sharesleuth, which was established in 2006.
Here is Mark Cuban’s statement on the SEC’s action, which he also posted on www.blogmaverick.com:
Nov. 17, 2008
RE: SEC Civil Action in the United States District for the Northern District of Texas, Dallas Division
Mark Cuban today responded to a civil complaint filed by the United States Securities and Exchange Commission in the United State District for the Northern District of Texas, Dallas Division. In its complaint, the Commission charges that Mr. Cuban engaged in violations of the federal securities laws in connection with transactions in the securities of Mamma.com Inc.
This matter, which has been pending before the Commission for nearly two years, has no merit and is a product of gross abuse of prosecutorial discretion. Mr. Cuban intends to contest the allegations and to demonstrate that the Commission’s claims are infected by the misconduct of the staff of its Enforcement Division.
Mr. Cuban stated, “I am disappointed that the Commission chose to bring this case based upon its Enforcement staff’s win-at-any-cost ambitions. The staff’s process was result-oriented, facts be damned. The government’s claims are false and they will be proven to be so.”
Ralph C. Ferrara, Esq.
Dewey & LeBoeuf LLP
1101 New York Avenue, N.W. Suite 1100
Washington, D.C. 2005