Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowA lawsuit accuses Dallas Mavericks owner Mark Cuban of wrongfully diverting millions of dollars from the NBA franchise’s home arena to make up for shortfalls incurred by the team.
Hillwood Center Partners filed the lawsuit last week in state district court in Dallas. The company is controlled by the team’s former owner, Ross Perot Jr. The Associated Press obtained a copy of the lawsuit today.
The lawsuit claims Cuban has covered significant cash shortfalls for the Mavericks by obtaining more than $29 million in unauthorized loans through a limited partnership.
Cuban declined comment in an e-mail to the AP. A spokesman for Perot did not immediately respond to a request for comment.
Last Friday, a federal judge today dismissed a civil insider-trading lawsuit against Cuban.
U.S. District Judge Sidney A. Fitzwater granted Cuban’s motion for dismissal but gave the U.S. Securities and Exchange Commission 30 days to file an amended complaint.
It wasn’t immediately clear on what grounds Fitzwater threw out the case.
The SEC had alleged Cuban was involved in insider trading when he sold shares in the Internet search-engine company Mamma.com Inc. after receiving confidential information about a private offering in 2004.
The SEC said Cuban avoided a loss of $750,000 by selling his 600,000 shares, which represented a 6.3 percent stake in the company.
Cuban graduated from Indiana University in 1981 and sold his Broadcast.com company to Yahoo! for $6 billion in 1999.
Please enable JavaScript to view this content.