What's Cookin' In Dallas? Cuban And The SEC

Law360, New York (August 24, 2009, 3:50 PM EDT) -- On July 17, 2009, the U.S. District Court in Dallas, Texas, presiding over the U.S. Securities and Exchange Commission’s civil action against Mark Cuban dismissed insider trading charges relating to MC’s sale of shares of Mamma.com Inc. (the “company”).

The dismissal is worth noting due to the profile of the case and, more importantly, the court’s analysis regarding the “misappropriation theory” of insider trading liability.

The relevant allegations from the SEC’s complaint can be summarized as follows:

- In March 2004, MC purchased 600,000 shares in...
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