US

Jury says Cuban did not commit insider-trading; says gov't fails to prove key elements of case

  • Dallas Mavericks owner Mark Cuban walks into the Earle Cabell Federal Courthouse for closing arguments with his lawyers, Tuesday, Oct. 15, 2013 in Dallas. The Securities and Exchange Commission is suing Cuban, saying he sold his shares in search engine company Mamma.com after learning privately about a stock offering that would lower the value of the shares. The SEC says Cuban avoided $750,000 in losses. Cuban disputes the SEC's claim that he agreed to keep information about the 2004 stock offering confidential. He also says other investors knew about the offer, and that he did nothing wrong by selling his shares for $7.9 million. (AP Photo/The Dallas Morning News, Tom Fox)  MANDATORY CREDIT; MAGS OUT; TV OUT; INTERNET USE BY AP MEMBERS ONLY; NO SALES

    Dallas Mavericks owner Mark Cuban walks into the Earle Cabell Federal Courthouse for closing arguments with his lawyers, Tuesday, Oct. 15, 2013 in Dallas. The Securities and Exchange Commission is suing Cuban, saying he sold his shares in search engine company Mamma.com after learning privately about a stock offering that would lower the value of the shares. The SEC says Cuban avoided $750,000 in losses. Cuban disputes the SEC's claim that he agreed to keep information about the 2004 stock offering confidential. He also says other investors knew about the offer, and that he did nothing wrong by selling his shares for $7.9 million. (AP Photo/The Dallas Morning News, Tom Fox) MANDATORY CREDIT; MAGS OUT; TV OUT; INTERNET USE BY AP MEMBERS ONLY; NO SALES  (The Associated Press)

  • Dallas Mavericks owner Mark Cuban walks into the Earle Cabell Federal Courthouse for closing arguments with his lawyers, Tuesday, Oct. 15, 2013 in Dallas. The Securities and Exchange Commission is suing Cuban, saying he sold his shares in search engine company Mamma.com after learning privately about a stock offering that would lower the value of the shares. The SEC says Cuban avoided $750,000 in losses. Cuban disputes the SEC's claim that he agreed to keep information about the 2004 stock offering confidential. He also says other investors knew about the offer, and that he did nothing wrong by selling his shares for $7.9 million. (AP Photo/The Dallas Morning News, Tom Fox)  MANDATORY CREDIT; MAGS OUT; TV OUT; INTERNET USE BY AP MEMBERS ONLY; NO SALES

    Dallas Mavericks owner Mark Cuban walks into the Earle Cabell Federal Courthouse for closing arguments with his lawyers, Tuesday, Oct. 15, 2013 in Dallas. The Securities and Exchange Commission is suing Cuban, saying he sold his shares in search engine company Mamma.com after learning privately about a stock offering that would lower the value of the shares. The SEC says Cuban avoided $750,000 in losses. Cuban disputes the SEC's claim that he agreed to keep information about the 2004 stock offering confidential. He also says other investors knew about the offer, and that he did nothing wrong by selling his shares for $7.9 million. (AP Photo/The Dallas Morning News, Tom Fox) MANDATORY CREDIT; MAGS OUT; TV OUT; INTERNET USE BY AP MEMBERS ONLY; NO SALES  (The Associated Press)

Jurors say billionaire Mark Cuban did not commit insider-trading when he sold his shares in an Internet company in 2004 after learning of a development that would dilute the value of his investment.

The jury in federal court found that the SEC failed to prove several key elements of its case, including that Cuban traded on nonpublic information.

The nine-member jury deliberated for about four hours.

The Securities and Exchange Commission accused Cuban of using inside information to sell $7.9 million of stock in Mamma.com after he learned confidentially of a stock offering that would send the share price down.

Cuban testified that he never agreed to keep information about the stock deal private and told the company that he would sell his shares.