Peter Kafka

Recent Posts by Peter Kafka

Mark Cuban: On Second Thought, I Do Have Some Things to Say About These SEC Charges

Yesterday, I suggested that the SEC may have finally muzzled Mark Cuban by filing insider-trading charges against him. My reasoning: It’s one thing to mouth off about, say, the NBA or Google, and quite another to prosecutors wielding a serious civil suit.

But I’m quite glad I’m wrong. Cuban can’t help himself, and has already begun waging a high-profile campaign against the regulators who are suing him.

Yesterday, someone in Cuban’s camp gave the New York Times what is purportedly an email from a SEC lawyer to Cuban; the letter seems to indicate that Cuban and the SEC had already been feuding over “Loose Change,” a documentary Cuban had funded that is critical of President George Bush.

Today, Cuban uses his personal blog to sound off against the SEC once again. Here’s the complete text, in case Cuban (or his lawyers) has second thoughts about carrying this on in public. But we don’t think he will:

November 18, 2008

On behalf of

Mark Cuban

RE: SEC Civil Action in the United States District

for the Northern District of Texas, Dallas Division

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. Here is a relevant excerpt from the interview with Mr. Faure:

CHRISTOPHER CLARK :

1) Q- We spoke earlier about you were telling Mr. Cuban in words or substance : “I have confidential information for you”.

A- Right.

2) Q- Do you recall anything Mr. Cuban said in response or reply to that statement by you ?

A- No, I do not.

The SEC knows this-they have the transcript, yet they brought the case anyway. Why? Do they have a different statement from Mr. Faure ?

Why did the SEC end their multi-year investigation of Mamma.com Inc. for alleged securities laws violations days before interviewing present and former Mamma.com Inc. executives about this matter? Was the timing a coincidence? We think not.

Any inquiries respecting this release should be directed to Stephen Best at Dewey & LeBoeuf LLP (202) 346-8735.

——————————

——————————Stephen A. Best

Partner

Dewey & LeBoeuf LLP

1101 New York Avenue, N.W., Suite 1100

Washington, D.C. 20005″

[Disclosure: I once bought Mark Cuban an Amstel Light.]


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