Mark Cuban just said “I’m out” to the Securities and Exchange Commission.
The billionaire owner of the Dallas Mavericks and notorious “shark investor” on the television show “Shark Tank,” was acquitted of insider trading by selling 600,000 shares worth $7.9 million in search firm Mamma.com on non-public information. He is said to have avoided a $750,000 loss on the sale, according to the SEC, which brought a civil suit against him in November 2008.
Cuban, 55, is worth an estimated $2.5 billion, according to Forbes. But why, you ask, would Cuban spend a few million in lawyer fees just to avoid a loss of $750,000?
Because he’s Mark Cuban and he thinks he’s untouchable.
“Clearing his name and others accused of insider trading in court is very important,” said Robert Heim, a former assistant regional director with the SEC’s enforcement division and a partner with law firm Meyers and Heim LLP.
The legal fight is said to have cost Cuban likely $1 million to $2 million in legal and attorney fees and was worth it for Cuban, Heim said.
“I would say that it was well over the $750,000 in losses just given the prestigious firm he used and the amount that went into a trial,” Heim said.
Settling the case with the SEC likely would have Cuban admitting guilt in some form. That would exclude him from utilizing benefits in SEC rules for future business dealings.
Maybe Cuban should stick to making deals for rotating vacuums and tummy lift products on “Shark Tank.”