In the latest celebrity insider trading case, a federal district court in Dallas, Texas dismissed the Securities and Exchange Commission’s insider trading complaint against Mark Cuban, the owner of the NBA’s Dallas Mavericks. The case, Securities and Exchange Commission v. Mark Cuban, No. 3:08-CV-2050-D (N.D. Tex. July 17, 2009),
is notable because the District Court found that an agreement to keep material non-public information confidential without an implicit or explicit agreement to refrain from trading is not sufficient to establish a duty not to trade under the “misappropriation theory” of insider trading.