Nov 20, 2008 09:30 AM
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New York, 9:19 AM
Wed Feb 10
56 posts in the last 24 hours
Mark "The Maverick, when it comes to blogs and also finance" Cuban is proclaiming his innocence, in detail! Cuban, the mouthy tech billionaire owner of the Dallas Mavericks, was charged with the world's least sophisticated insider trading scheme by the SEC earlier this week. He issued a rote statement the same day denying the charges, and lamented that he wished he could say more. Well now he's saying more!
Cuban's basic defense: Yes, I sold a bunch of stock after the CEO of a company I partially owned told me confidential, nonpublic information that I knew would hurt the stock price. But I never agreed to keep the information confidential, so there! Then he says (through his lawyer) that the CEO of said company is full of shit because he can't even remember the conversation. They posted this excerpt of an interview with the CEO:
1) Q- We spoke earlier about you were telling Mr. Cuban in words or substance : “I have confidential information for you”.
A- Right.
2) Q- Do you recall anything Mr. Cuban said in response or reply to that statement by you ?
A- No, I do not.
Then they insinuate that the SEC's timing of the lawsuit is fishy. So there you have it: everyone is conspiring against Mark Cuban. We will continue to watch with an open mind.
[WSJ. And I know nothing about the law, but doesn't this defense sound strange on a logical level? You're not allowed to sell stock on inside information, but if you didn't agree not to do it, then you can? Any lawyers in the house here?]
Send an email to Hamilton Nolan, the author of this post, at Hamilton@gawker.com.
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