Insider trading trial starts

Opening arguments in the insider trading trial of Cuban begin. The Securities and Exchange Commission claims Mamma.com’s chief executive, Guy Fauré, told Cuban the company was about to issue new shares in a private offering, which could cause the stock price to drop and dilute Cuban’s stake in the company. Cuban says he did nothing wrong when he sold his 6.3 percent stake , but  the SEC claims he knew what he was doing in unloading it, thus avoiding a $750,000 loss. The SEC is seeking to recoup lost funds, impose fines and obtain a permanent injunction to bar Cuban from similar alleged misconduct.