Mark Cuban: On Second Thought, I Do Have Some Things to Say About These SEC Charges
Yesterday, I suggested that the SEC may have finally muzzled Mark Cuban by filing insider-trading charges against him. My reasoning: It’s one thing to mouth off about, say, the NBA or Google, and quite another to prosecutors wielding a serious civil suit.
But I’m quite glad I’m wrong. Cuban can’t help himself, and has already begun waging a high-profile campaign against the regulators who are suing him.
Yesterday, someone in Cuban’s camp gave the New York Times what is purportedly an email from a SEC lawyer to Cuban; the letter seems to indicate that Cuban and the SEC had already been feuding over “Loose Change,” a documentary Cuban had funded that is critical of President George Bush.
Today, Cuban uses his personal blog to sound off against the SEC once again. Here’s the complete text, in case Cuban (or his lawyers) has second thoughts about carrying this on in public. But we don’t think he will:
November 18, 2008
On behalf of
Mark Cuban
RE: SEC Civil Action in the United States District
for the Northern District of Texas, Dallas Division
The SEC knows their case centers on one telephone conversation between two individuals–4 years ago. The SEC claims there was an agreement between these parties to the conversation to keep certain information confidential. We interviewed Guy Faure, the former CEO of Mamma.com Inc., with whom the SEC claims Mr. Cuban made an agreement. We had a court reporter transcribe the interview. There was no agreement to keep information confidential. Here is a relevant excerpt from the interview with Mr. Faure:
CHRISTOPHER CLARK :
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.
The SEC knows this-they have the transcript, yet they brought the case anyway. Why? Do they have a different statement from Mr. Faure ?
Why did the SEC end their multi-year investigation of Mamma.com Inc. for alleged securities laws violations days before interviewing present and former Mamma.com Inc. executives about this matter? Was the timing a coincidence? We think not.
Any inquiries respecting this release should be directed to Stephen Best at Dewey & LeBoeuf LLP (202) 346-8735.
——————————
——————————Stephen A. BestPartner
Dewey & LeBoeuf LLP
1101 New York Avenue, N.W., Suite 1100
Washington, D.C. 20005″
[Disclosure: I once bought Mark Cuban an Amstel Light.]
Comments
So it was just a coincidence that he dumped 600,000 shares the day before a secondary offering?
Martha Stewart wore a “jumpsuit” for selling 4000 shares of Imclone on indirect news that bad news was coming.
Posted by sam beal at November 18th, 2008 at 12:05 pmKarma. So much for the blogmaverick….Blog Maverick!? Pft. One thing he’ll never have is class. Sooner or later, that comes back to haunt you. I prefer to call it karma. Just not quite as slick as you thought you were(note:past tense), Cuban.
Posted by Mark Light at November 18th, 2008 at 3:51 pmP.S. I wonder what he’d look like in federal prison attire….Civil? I thought this type of stuff was also Criminal, with a capital “C”. (tongue planted firmly in cheek).
Posted by Mark Light at November 18th, 2008 at 3:52 pm