Mark Cuban's insider trading case is dismissed

Discussion in 'Wall St. News' started by Pekelo, Jul 17, 2009.

  1. My vague memory from studying for the CFA exam is that the tipper cannot unilaterally impose a duty not to act by giving unsolicited information. Something like a fiduciary relationship has to exist (except in special cases like a tender offer), and if an insider carelessly releases information where that relationship doesn't exist it can be traded on.

    Otherwise a CEO could just blurt confidential information to large shareholders at key times and restrict them from selling. Assuming he has a pretext to get around Reg FD, but that is something else I only vaguely remember.

    Does this sound right? It doesn't sound like there is a duty if he was just called out of the blue with an offer of stock. I agree he sounds like an a-hole but I am still curious if what he did was really illegal.

     
    #21     Jul 21, 2009