Tuesday, November 18, 2008

Quick update on Cuban's insider trading case

Two updates:

First Cuban has provided an update on his BlogMaverick page in which is is implied that Cuban never intented to keep anything confidential. From the MarketWatch:
"on Tuesday posted an email containing a purported transcript of a conversation between Mamma.com Chief Executive Guy Faure and Cuban's lawyers, in which Faure acknowledges that Cuban didn't explicitly agree to keep the content of their conversation confidential.'
The actual transcript from BlogMaverick:

"1) Q- We spoke earlier about you were telling Mr. Cuban in words or substance : “I have confidential information for you”.

A- Right.

2) Q- Do you recall anything Mr. Cuban said in response or reply to that statement by you ?

A- No, I do not."

Which is at least somewhat supportive of saying I will not keep it confidential.

And secondly, Professor Bainbridge has written on the case.
"My review of the complaint suggests that the SEC has a pretty good case, assuming they can prove out the facts alleged, and they get a court willing to give the rules a liberal construction on one key point.

The central legal issue in this case likely will be whether Cuban assumed a fiduciary obligation of confidentiality with respect to Mamma.com"
Thanks to Financial Rounds for the link to the Professor Bainbridge coverage (which is very good I must add!)

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