A federal judge today dismissed a civil insider trading lawsuit against Dallas Mavericks owner Mark Cuban.
Judge Sid Fitzwater in Dallas gave the Securities and Exchange
Commission 30 days to file an amended complaint.
The SEC alleged Cuban sold shares in Mamma.com after receiving
confidential information about a private offering in 2004. The feds
allege the billionaire avoided a $750,000 loss by selling his
600,000 shares -- about 6 percent of the the company.
Fitzwater says the SEC could file a new complaint if it can
allege that Cuban promised not to trade on the information. The
judge rejected some of Cuban's claims about his fiduciary
relationship with the company.
Scott Friestad with the SEC's Division of Enforcement says the
commission is reviewing the ruling and weighing its options.
Cuban didn't immediately comment.
Cuban attorney Ralph Ferrara says he's impressed with what he
called Fitzwater's "appellate court level" analysis.