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SEC takes Cuban case to appeals court

Dallas -- The U.S. Securities and Exchange Commission filed notice it would appeal a July ruling that dismissed an insider trading case against billionaire Mark Cuban.

In July, federal Judge Sidney Fitzwater tossed out the SEC case on the grounds that Cuban had not agreed in advance not to trade shares of Mamma.com stock after a confidential conversation with the company's Chief Executive Officer Guy Faure.

Cuban had been told the company planned to issue private shares to raise capital. But before the move became public, Cuban sold his company shares, avoiding a loss of $750,000, The Dallas Morning News reported Wednesday.

"Not only did the SEC lose on the law, but, as Mr. Cuban's recent sanctions motion demonstrates, the SEC could never have won on the actual facts," the statement from Cuban's lawyer Stephen Best.

"This appeal is nothing more than the SEC's desperate attempt to shock a heartbeat into a case that was dead on arrival," he said.

In a statement, the SEC said, "we believe the district court erred in dismissing our complaint and we look forward to presenting our position to the Fifth Circuit Court of Appeals."

Copyright 2009 by United Press International.

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