This morning, U.S. District Judge Sidney A. Fitzwater dismissed the SEC’s insider trading case against Dallas Mavericks owner Mark Cuban. A copy of the Court’s Order is available here.
In his ruling, Judge Fitzwater focused heavily on the issue of whether the SEC had adequately alleged that Cuban entered into an agreement sufficient to create the duty necessary to establish misappropriation theory liability. The court found that the SEC needed to allege that Cuban entered into an express or implied agreement with Mamma.com (a) not to disclose material, nonpublic information about the PIPE offering, and (b) not to trade on or otherwise use the information.
