Quimbee logo
DMCA.com Protection Status
From our private database of 19,800+ case briefs...

Securities and Exchange Commission v. Cuban

U.S. District Court, Northern District of Texas
634 F.Supp.2d 713 (2009)


Mark Cuban (defendant) was the largest shareholder of Mamma.com. The company decided to raise capital through a planned private investment in public equity (PIPE). The CEO of Mamma.com informed Cuban of the PIPE offering, after Cuban agreed to keep any information provided confidential. Cuban sold all of his Mamma.com shares without telling Mamma.com that he intended to do so before the PIPE was publicly announced. Mamma.com then publicly announced the PIPE offering, and the company’s stock declined. Cuban avoided more than $750,000 in losses by selling his shares before the PIPE was publicly announced. The SEC (plaintiff) brought suit against Cuban under the misappropriation theory of insider trading, claiming that Cuban violated § 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated under the Exchange Act. Cuban now moves to dismiss the complaint, arguing that the SEC has failed to demonstrate that his conduct was deceptive, as required under § 10(b).

Rule of Law


Holding and Reasoning (Fitzwater, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 510,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 510,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 19,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial