The SEC could be wishing it had never sued Mark Cuban.
In August, a federal court judge in Texas dismissed, with prejudice, the SEC’s suit alleging insider trading relating to Cuban’s sale of shares of Mamma.com.
Cuban did not go quietly, however, and has requested the SEC pay his attorney fees.
On Friday, Judge Sidney Fitzwater ruled that Cuban could conduct discovery to support his fee request. He has asserted that the SEC did not have sufficient evidence to bring the suit and that it was aware of the defects in its case before the lawsuit was filed. The SEC, Cuban said, had no good faith basis to bring the suit.
One of Cuban’s attorneys at Dewey & Lebeouf, Stephen Best, told the Am Law Litigation Daily that he was unaware of another similar situation where discovery was allowed. “I think this is precedent-setting,” he said.
The judge set the discovery deadline for February 1, 2010.
Courthouse News covered the story here, and also provides the order, included below.
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