Arnold Spencer Quoted in Law360, Dallas Morning News on Cuban Acquittal
Akin Gump white collar defense partner Arnold Spencer was quoted by Law360 and The Dallas Morning News on the exoneration of Mark Cuban by a federal jury on October 16.
In the Dallas Morning News article “Jury finds no proof Mark Cuban engaged in insider trading,” Spencer said that the defeat of the government’s case will not deter the SEC from pursuing high-profile cases in the future: “Their mission is to protect investors, and in many ways, they carry out their mission when they bring these close cases. There is no doubt in my mind that the SEC will continue to vigorously enforce these insider trading laws.”
For Law360’s story “Cuban Verdict Likely The Last Word In SEC Case,” he noted that the SEC may not want to risk negative interpretation of its rules—and issuance of binding precedent—by the 5th Circuit in an appeal: “Given these adverse jury findings, I think the SEC would be concerned a panel of judges would use these findings to limit the misappropriation theory. That will act as a deterrent and likely discourage the SEC from pursuing an appeal."
Spencer also noted that an upcoming SEC policy change whereby the commission will pursue an admission of wrongdoing in cases in which, among other factors, a large number of investors have been harmed, will likely lead to more trials. He believes that this will mean a “disproportionate amount” of those cases will result in SEC wins because the commission will have solid cases against defendants with weaker defenses than Cuban.
To read the full Law360 article, please click here.