According to the SEC, Quebec-based Mamma.com invited Cuban in June 2004 to participate in a private stock offering after he consented to keeping it confidential. Cuban discovered that the offering would dilute the holdings of existing shareholders and be sold at a discount to the market price, he became “angry and upset,” the SEC said.

In a phone call with Mamma.com’s chief executive, Cuban said: “Well, now I’m screwed. I can’t sell,” according to the SEC’s complaint. Within hours of receiving information, Cuban told his broker, “Sell what you can tonight and just get me out the next day,” the SEC alleged. During after-hours trading on June 28, 2004, Cuban sold 10,000 of his 600,000 shares, and the following morning sold his remaining stake. Later that day, after markets closed, Mamma.com publicly announced its private placement offering. When markets reopened the following day, the company’s stock was down 9.3 percent at $11.89.

Cuban’s legal problem hearken back to Martha Stewart’s insider trading problems with the Imclone stock trading scandal. Of course, Cuban is innocent until proven guilty. But, I think this would be a good time for these two super-rich celebrities to see if there’s a love connection….

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