Mark Cuban is facing a Shark Tank of different proportions this week, as the Mavericks ‘ owner heads to court in an insider training case.
While Mark Cuban has hit it big on the show, which centers on real-life corporate ruthlessness, the boss is dealing with one of the less glamorous aspects of being a HBIC — allegations by the Securities and Exchange Commission of out of bounds plays.
The case hinges on a phone call back in 2004, and the unloading of shares in a company about to tank. Cuban sold off 600,000 shares of the company allegedly following the phone call, and USAToday reports:
“Cuban is accused of using insider information to dump his stock in a small Internet-search company in 2004 just before the shares fell in value. He avoided $750,000 in losses. The Securities and Exchange Commission wants Cuban to give up the money and pay a civil penalty.”
Back in 2009, a federal judge declined to try the case, but that decision was overturned on appeal. Now James Meyers, a former SEC enforcement attorney, says that Cuban must charm the jurors and influence them to overlook his actions — which appear to be largely under the purview of the jury in terms of legality.
Meyers says that if Cuban makes a favorable impression on the jury, the case could be decided in his favor :
“A lot of it will come down to how Cuban comes across… I would tell him to come across as humble and affable and not as master of the universe.”
A few years back, Mark Cuban counter-alleged that the SEC targeted him due to his political persuasion and high profile. Investigators found some evidence to support his claim.
