In a trial that lasted three weeks, the SEC accused Cuban of illegally selling shares if the Canadian company Mamma.com in 2004. Federal attorneys argued Cuban dropped the stocks based on inside information he received from the company’s CEO, and avoided $750,000 in losses on a $7.9 million sale.
Cuban’s attorney, Thomas Melsheimer, argued the information was available to the public and the confidential discussion the SEC pointed to never happened. According to the Associated Press, Cuban testified during the trial that that he never agreed to keep information about Mamma.com’s stock deal private or refrain from selling his shares.
Melsheimer claims the prosecution’s key witness, Mamma.com CEO Guy Faure “changed his recollection” about Cuban’s alleged agreement once the SEC decided to drop an unrelated investigation into Mamma.com.