Securities and Exchange Commission v. Cuban

After Mamma.com's CEO told major shareholder Cuban (defendant) about a planned private stock offering (PIPE), Cuban responded "Well, now I'm screwed. I can't sell," agreed to keep the information confidential, then called the investment bank to learn the PIPE would price below market and sold all his shares before the offering was publicly announced, avoiding over $750,000 in losses; the SEC (plaintiff) sued under the misappropriation theory of insider trading, and the district court dismissed for failure to show deceptive conduct.