Regardless of whether Cuban knew the upcoming PIPE was confidential, nothing about his sale of the stock was `fraudulent.' The investors who bought the shares

Regardless of whether Cuban knew the upcoming PIPE was confidential, nothing about his sale of the stock was `fraudulent.' The investors who bought the shares from him were going to buy the stock anyway; Cuban did not make any false representations or inducements to convince them to buy his stock. In fact, it is pretty hard to argue that his trade created any victims at all, since the buyers would have been paying a higher price for the shares, and hence lost more money, if Cuban _hadn't_ been selling, since his quick exit pushed down the price. Cuban's sale of stock added correct information to the markets. As an outside investor, Cuban had no duty of trust to the other investors, unlike the CEO, who violated his fiduciary duty by disclosing confidential information to an outside investor without a written non-disclosure agreement.