Mark Cuban: Confidentiality Agreement Didn't Exist

Clusterstock:

As we predicted, Mark is fighting this on the grounds that he didn't have a "duty of confidentiality" and so therefore was free to trade on the information. "The SEC will likely rely on Cuban's conversation with the company about the possibility of him investing in their private placement. They'll claim that Cuban was trading on information he had a duty to keep confidential. Once you've got duty in place, the bar against trading kicks in. Basically, be careful what you agree to keep confidential because it may end up inhibiting your investment decisions in the future," we wrote.

Beyond that, we're surprised (but very glad) at how willing Mark Cuban is to use his blog to fight the case.

Read the whole story: Clusterstock

Comments

[bluerednot]

This will likely become a very twisted tale before it is done ... When was Cuban told about the possibility of a PIPE - and was he told it was a definite plan - and when it might occur? - I thought I saw it reported that the conversation with Cuban occurred just a couple of days before they did the PIPE - if so, Cuban was not a substantive "insider" - in that they obviously were not keeping him well informed - they may have only been attempting to inform him just enough to "freeze" him - attempting to tie him up with insider knowledge so he could not trade his stock -- but they may have tiptoed along the edge - because they did not want to tell him very much ( - one of the issues will be - how much "material" information did they definitively disclose -- or were they purposely vague ?

[Wiserone]

Risking his Billions and possible jail time for $750,000?????