Well, that didn’t take long. It only took Mark Cuban one day to break his monastic vow of silence.
On Monday, the U.S. Securities and Exchange Commission filed an insider trading case against Cuban. The feds claimed Cuban received confidential information from the CEO of Mamma.com and turned around and dumped his shares, saving $750,000 when the stock dropped the next day.
Fortunately, that self-imposed muzzle came right off Tuesday.
In a follow up post on his blog, Cuban lays out his defense. Essentially, he claims he never agreed to keep information confidential. In Cuban’s telling, the case comes down to the recollections of that phone call between himself and the Mamma.com CEO that took place four years ago::
The SEC knows their case centers on one telephone conversation between two individuals- 4 years ago. The SEC claims there was an agreement between these parties to the conversation to keep certain information confidential. We interviewed Guy Faure, the former CEO of Mamma.com Inc., with whom the SEC claims Mr. Cuban made an agreement. We had a court reporter transcribe the interview. There was no agreement to keep information confidential.
So, the battle has been joined. Hopefully, we can expect to soon see Cuban making the rounds of talk shows, maybe ranting on Jim Cramer’s Mad Money for a bit, and, who knows, even hosting Saturday Night Live and doing a skit lampooning the SEC?