SEC appeals dismissal of case against Mavs basketball team owner

The US Securities and Exchange Commission (SEC) has appealed the dismissal of an insider trading lawsuit filed against billionaire Mark Cuban, owner of the Dallas Mavericks NBA team.

The SEC filed notice on Wednesday with the US District Court in Dallas, which dismissed the case on July 17, informing the court of plans to challenge the ruling in a New Orleans appeal court.

US District Judge Sidney Fitzwater granted Cuban's motion to dismiss the case, but gave the SEC time to file an amended complaint.

The SEC decided instead to appeal to a higher court.

The 51-year-old Texas business tycoon was alleged to have sold 600,000 shares of stock from Internet search engine company Mamma.com Inc. in 2004 after receiving confidential information about a private offering.

The SEC alleged in its civil suit that Cuban avoided a loss of 750,000 dollars by selling his stake in the company.

Fitzwater wrote in his ruling that the SEC didn't accuse Cuban of promising not to trade based on the confidential information he received. Therefore the commission couldn't hold him liable for illegal insider trading.

Cuban made his money through Internet and technology companies and in 2000 purchased the Mavericks, becoming an outspoken critic of some aspects of the league and billing himself as his team's top fan.

A jeans-clad fixture at courtside at his team's games, Cuban has been fined more than 1.5 million dollars by the NBA for statements critical of the league and its officials.