(DALLAS) — A federal court in Texas on Wednesday found Dallas Mavericks owner and billionaire Mark Cuban not guilty of insider trading, The Dallas Morning News reported.
The court found that Cuban was acting within the law when he sold off six percent, or $7.9 million, of his share in Mamma.com – a would-be rival of Google – in 2004.
It was in that year that Cuban was informed by the Mamma.com CEO of a discounted stock offering that would have hurt the value of Cuban’s shares. He sold his six percent shortly after learning of the impending offering.
The prosecution from the Securities and Exchange Commission argued that Cuban had an unfair advantage when he was told of the stock offering, but the jury found that it was, in fact, public knowledge at the time Cuban sold his stock.
Copyright 2013 ABC News Radio
Natalia Hepworth, EastIdahoNews.com
Robert Patten, EastIdahoNews.com
Seth Fiegerman, CNN