SEC: Cuban acquires stake in Carmike

NEW YORK • Mark Cuban, the billionaire owner of the Dallas Mavericks basketball team and co-owner of the Landmark Theaters cinema chain, has acquired a 9.4 percent stake in Carmike Cinemas Inc., according to a regulatory filing Monday.

In the Securities and Exchange Commission filing, Cuban reported buying 1.2 million Carmike shares on the open market for roughly $2.8 million of his funds. According to the filing, Cuban has been acquiring the shares through his personal investment account since mid-October.

Cuban has been controversial within the National Basketball Association - racking up more than $1 million in fines for his behavior on the court - and has become the target of civil lawsuit alleging insider trading.

In November, regulators accused Cuban of using confidential information to bail out of an investment in search engine firm Mamma.com Inc. in 2004, avoiding about $750,000 in losses. Cuban has denied wrongdoing.

Cuban is not facing jail time but could be forced to pay a penalty of close to $3 million if he is found guilty.

According to the SEC's case, Cuban told his broker to sell his Mamma.com shares after the company's then-chief executive confidentially told him of a stock offering that would dilute the value of stock held by current investors.

In Monday's SEC filing, Cuban said he acquired his stake in Carmike for investment purposes. He reserved his right to discuss the company's performance and strategic direction with Carmike's stockholders, officers or directors.