Dismissal of Mark Cuban Insider Trading Case Centers on Confidentiality Agreement

August 18, 2009
The U.S. District Court for the Northern District of Texas recently dismissed a complaint brought by the SEC against Mark Cuban, entrepreneur and owner of the Dallas Mavericks. The complaint, initially brought under the misappropriation theory of insider trading, centered on Cuban’s sale of stock of a company in which he was the largest investor. This update examines the decision and provides guidance to issuer representatives and recipients in connection with conveying and receiving confidential information.