: Civil Action No.: 0
.'" JURY TRIAL
Plaintiff Securities and Exchange Commission ("Commission") alleges as follows:
SUMMARY OF ALLEGATIONS
The Commission charges Defendant Mark Cuban ("Cuban") with committing
securities fraud by engaging in illegal insider trading. Despite agreeing in June 2004 to keep
material, non-public information about an impending stock offering by Mamma.com Inc.
confidential, Cuban sold his entire stake in the company -600,000 shares -prior to the public
announcement of the offering. By selling when he did, Cuban avoided losses in excess of
By conduct detailed in this Complaint, Cuban violated Section 17(a) of the
Securities Act of 1933 ("Securities Act") [15 U.S.C. 5 77q(a)] and Section 10(b) of the Securities
Exchange Act of 1934 ("Exchange Act") [15 U.S.C. 5 78j(b)] and Rule lob-5 thereunder [17
C.F.R. 240.10b-51. Unless enjoined, Cuban is likely to commit such violations again in the
f i e .
The Commission seeks a judgment fiom the Court: (a) enjoining Cuban from
engaging in hture violations of the antifraud provisions of the federal securities laws; (b)
ordering Cuban to disgorge, with prejudgment interest, the losses avoided as a result of the
actions described herein; and (c) ordering Cuban to pay a civil money penalty pursuant to Section
21A of the Exchange Act [I5U.S.C. 5 7th-11.
JURISDICTION AND VENUE
The Commission brings this action pursuant to Sections 20@) and 20(d) of the
Securities Act [15 U.S.C. 55 77t(b) and 77t(d)] and Section 21(d) of the Exchange Act [15
The Court has jurisdiction over this action under Sections 20(b), 20(d), and 22(a)
of the Securities Act [15 U.S.C. $5 77t(b), 77t(d), and 77v(a)] and Sections 21(d), 21(e), 21A,
and 27 of the Exchange Act [15 U.S.C. $5 78u(d), 78u(e), 78u-1, and 78aal.
Cuban, directly or indirectly, used the means or instruments of interstate
commerce, the mails, or the facilities of a nat