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Mark Cuban's Insider Trading Case Resurfaces

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Billionaire Mark Cuban was contacted by the U.S. Fifth Circuit Court of Appeals today and ordered to appear in court regarding a civil fraud lawsuit, which accuses the owner of the Dallas Mavericks of insider trading.

In the lawsuit, the Securities and Exchange Commission accuses Cuban of selling his 6.3 % stake in Mamma.com during 2004, after supposedly learning the Montreal-based search engine company was planning a stock offering. The lawsuit stated that Cuban's sale allowed him to avoid more than $750,000 of losses.

In an emailed statement, Cuban said he will seek a rehearing before the entire Fifth Circuit and continue to seek sanctions against the SEC, which he said has demonstrated "bad faith in bringing this utterly meritless case."

SEC spokesman John Nester said: "We are pleased with the court's decision and look forward to presenting our case."

Mamma.com is now known as Copernic Inc.

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Posted-In: Mark Cuban U.S. Securities and Exchange CommissionMovers & Shakers Insider Trades