Securities & Exchange Commission v. Mark Cuban

Securities & Exchange Commission v. Mark Cuban

by Marc I. Steinberg

Paperback(Deep Dive Series)

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Overview

This experiential book focuses on the Securities and Exchange Commission's (SEC) enforcement action charging Mr. Mark Cuban with illegal insider trading. Mr. Cuban is a well-respected entrepreneur, businessman, and investor whose ownership interests include the National Basketball Association's (NBA) Dallas Mavericks. Mr. Cuban also is one of the principal investors on the reality television program Shark Tank. His net worth is valued in the billions of dollars. The author (Marc I. Steinberg) was retained as an expert witness in this case on Mr. Cuban's behalf. Professor Steinberg therefore had the opportunity to experience this litigation from the playing field rather than as a spectator. These insights enhance the book's substance and vitality. In captivating fashion, the book presents key documents, testimony, and insights from the start of the SEC's investigation of Mr. Cuban's trading of Mamma.com stock through the end of the trial, which ended with the jury exonerating him. This five-year saga came at a high cost to the government and Mr. Cuban. In his successful defense, Mr. Cuban reportedly spent $12 million in legal fees in defeating the government's charge that he was a fraudster. For the SEC, after years of vigorous pursuit with less than a formidable case, it incurred a significant defeat. In the end, when Mr. Cuban emerged victorious and the government packed its bags, questions were raised as to strategic decisions made, the high costs of defending one's good name, the limits of government prosecutorial discretion, and the breadth of our insider trading laws. This book focuses on this intriguing litigation, drawing the reader's attention as the story unfolds.

Product Details

ISBN-13: 9781946074249
Publisher: Twelve Tables Press
Publication date: 04/19/2019
Edition description: Deep Dive Series
Pages: 360
Product dimensions: 7.00(w) x 10.00(h) x 0.90(d)

About the Author

Marc Steinberg is the Radford Professor of Law at Southern Methodist University Dedman School of Law.

Table of Contents

Note from the Author xiii

Foreword (by George Anhang) xv

Acknowledgments xxi

Chapter 1 Setting the Stage 1

Chapter 2 A "Glimpse" at the Law of Insider Trading 7

SEC v. Mark Cuban (5th Cir. 2010) 9

Chapter 3 The SEC's Investigation 15

I Issuance of SEC Subpoena to Mr. Cuban 15

II Investigative Testimony 26

III Wells Submission 30

IV SEC Decision to Institute Enforcement Action 32

Chapter 4 The SEC's Initiation of Litigation and Mark Cuban's Response 33

I The SEC's Complaint 33

II The Cuban Frontal Challenge 39

III Pro Hac Vice 41

IV The Failed Attempt at Settlement Resolution 45

V Motion for Judicial Notice 46

VI The Motion to Dismiss the SEC's Complaint 47

A SEC's Position 47

B Mr. Cuban's Position 48

C Brief of Amici Curiae Supporting the Motion to Dismiss 49

D The District Court Grants the Motion to Dismiss 50

E The SEC's Appeal and the Fifth Circuit's Reversal 50

Chapter 5 Onward to Discovery 53

I The Scheduling Order 53

II Inadvertent Production of Privileged Documents-Stipulated Protective Order 55

III FRCP Rule 26(a) Initial Discovery Disclosures 57

IV Motions to Compel Production of Documents 62

V The SEC's Motion to Compel Mr. Cuban's Deposition 66

VI Deposition Testimony 71

VII Expert Witness Testimony 74

VIII Onward to Pre-Trial Matters 87

Chapter 6 Prelude to Trial 89

I Mr. Cuban's Motion for Summary Judgment 89

A The Oral Argument 89

B The District Court's Denial of the Motion 95

II Mr. Cuban's Motion In Limine 102

A Mr. Cuban's Motion 103

B The SEC's Response 104

C The District Court's Advisory 107

III The Pre-Trial Order 108

IV The Road to Trial 115

Chapter 7 The Trial-The SEC vs. Mark Cuban 117

I Preparing for Trial 117

A Parties' Filing Regarding Status and Estimated Trial Duration 117

B The District Court's Order Setting the Trial Date 118

C The Parties' Trial Exhibit Lists and Objections Thereto 118

II Jury Selection 121

III The Trial 123

A The Opening Statements 123

1 The SEC's Opening Statement 123

2 The District Judge's Instructions to the Jury 132

3 Mr. Cuban's Opening Statement 133

B Trial Testimony 141

1 The SEC Presents Its Case 141

a Testimony of Mr. David Goldman 142

b Testimony of Mr. Arnold Owen 150

c Testimony of Mr. Guy Fauré 170

d Testimony of Mr. Mark Cuban 184

2 Mr. Cuban Moves for a Directed Verdict 227

3 Mr. Cuban Presents His Defense 228

a Testimony of Mr. Charles McKinney 229

b Testimony of Mr. Daniel Bertrand 242

c Testimony of Mr. Mitchell Kopin 246

d Testimony of Mr. Christopher Aguilar 250

e Testimony of Mr. Alton Turner 260

f Testimony of Dr. Erik Sirri 263

4 The Trial Testimony Concludes 276

C The Closing Arguments 276

1 The SEC's Closing Argument 278

2 Mr. Cuban's Closing Argument 288

3 The SEC's Final Salvo 301

D The Court's Charge to the Jury 306

E The Jury Deliberates 318

F The Jury's Verdict 319

G The Judgment 321

Chapter 8 Concluding Comments and Conjectures 323

I Why Did the SEC File This Lawsuit in Dallas? 323

II Going to Trial with the Government-An Expensive Ordeal 326

III The Murky Insider Trading Law in the United States 327

IV The Failed Settlement Negotiations 329

V The SEC's "Star" Witnesses 331

VI The Jury Charge 331

VII The SEC Calling Mr. Cuban in Presenting Its Case 332

VIII Where Was Dr. Sialm? 332

IX Declining to Appeal the Jury Verdict and Judgment 333

X Conclusion 333

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