From our private database of 14,100+ case briefs...
Securities and Exchange Commission v. Cuban
United States Court of Appeals for the Fifth Circuit
620 F.3d 551 (2010)
Mark Cuban (defendant) was a large minority shareholder of Mamma.com. The company decided to raise capital through a private investment in public equity (PIPE). Mamma.com’s CEO informed Cuban of the planned PIPE offering. Cuban responded by saying: “Well, now I’m screwed. I can’t sell.” Cuban agreed, though, to keep the information confidential. The CEO told Cuban that if he wanted more information he could call the investment bank overseeing the PIPE. Cuban did so and learned that Mamma.com was selling the PIPE at below market price. Soon after this conversation, Cuban sold all of his Mamma.com shares without telling Mamma.com that he intended to do so. Mamma.com then publicly announced the PIPE offering, and the company’s stock declined. Cuban would have lost more than $750,000 had he not sold when he did. The Securities and Exchange Commission (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. The district court granted Cuban’s motion to dismiss, finding that the SEC failed to demonstrate that Cuban’s conduct was deceptive, as required under § 10(b). The SEC appealed.
Rule of Law
Holding and Reasoning (Higginbotham, J.)
What to do next…
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 97,000 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.
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 223,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 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.