United States Fifth Circuit

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SEC v. Cuban, 09-10996

In an action by the SEC alleging that defendant, Mark Cuban, violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 by trading in Mamma.com stock in breach of his duty to the CEO and Mamma.com, amounting to insider trading under the misappropriation theory of liability, dismissal of the action is vacated given the paucity of jurisprudence on the question of what constitutes a relationship of "trust and confidence" and the inherently fact-bound nature of determining whether such a duty exists.

Appellate Information

  • Decided 09/22/2010
  • Published 09/22/2010


  • Patrick E. Higginbotham


  • United States Fifth Circuit