Mark Cuban is trying to fill the hole in his already low reputation in the sports world with the file of his latest statement. Cuban claims the SEC had a “pre-existing bias” against him and that they are guilty of “bad faith in bringing an utterly meritless claim against him.”
However, as most critics have said, Cuban’s case looks like insider trading and nothing more. The SEC claims that the CEO of a small Internet search company phoned their largest shareholder, Cuban, and told him about a new stock offering that would actually reduce the value of Cuban’s share in the company. Cuban expressed his disgust, but realized that the rules of stock trading prevented him from selling his shares right away. However, Cuban ignored his own advice and sold his shares in the company, saving him a loss of $750,000 as the stock price dropped.
One has to wonder where Cuban finds his defense? Is it hidden in his large ego? Maybe it’s on the Mavericks bench? With such hard evidence against him, Cuban seems to think that bias will save him, and maybe it will for now. Cuban and his legal team have prevailed early in the case when they asked the district court judge for a dismissal. But, the weaknesses in Cuban’s argument were exposed by the judge who dismissed the case with a written opinion that proposed that Cuban had not affirmatively promised not to use the inside information he received from the CEO.
Unsurprisingly, the SEC quickly appealed that surprise ruling and the higher court agreed by similarly describing Cuban’s activities as those resembling insider trading.
Now that a federal judge in Dallas is preparing for the trial, the sports world has much to look forward to. One has to wonder if Cuban will really be able to win with theatrics and empty arguments. While procedural efforts might be the best avenue for Cuban’s lawyers, the SEC plans to use hard evidence and a backbone to win this case. Other high profile individuals such as Martha Stewart (who actually was convicted of perjury) have faced a similar matter, but Stewart is definitely a horse of a different color in comparison to Cuban. What America has to look forward to is watching Cuban try to blamelessly absolve himself off the court, which should be just as amusing as his screaming on the court.