Roundup: Cuban seeks end to SEC case, venture capital investments fall; more

Cuban asks judge to end SEC insider trading case

Mark Cuban, the Texas billionaire, pro basketball team owner and Mt. Lebanon native, went to the federal courthouse in Dallas Friday, seeking to persuade a judge to throw out for a second time a federal lawsuit accusing him of insider trading. U.S. District Judge Sidney Fitzwater heard arguments on Cuban's request and on the Securities and Exchange Commission's opposition. A federal appeals court in New Orleans reinstated the case against Cuban, the owner of the Dallas Mavericks, in 2010, the year after Fitzwater dismissed it. The SEC, in a 2008 suit, accused Cuban of making illegal trades in June 2004 in shares of Internet search company Mamma.com Inc. based on inside information from its then-chief executive officer, Guy Faure. Cuban claims what he learned from Faure was no secret. The SEC claims Cuban, upset upon learning of the company's imminent plans for a below-market private placement, sold his 6.3 percent stake for about $7.9 million within hours of talking to Faure, avoiding a $750,000 loss.

Venture investments declined

A new study shows that funding for business startups declined in 2012, the first time that's happened in three years, as venture capitalists spent less money on fewer deals. Capital-intense sectors like clean technology and life sciences were among the hardest hit, according to the MoneyTree study released Friday. It was conducted by PriceWaterHouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters. In all of 2012 startup investments fell 10 percent to $26.52 billion from $29.46 billion. There were 3,698 deals completed, down 6 percent from 3,937 in 2011. Venture investments also declined 13 percent in the final quarter of the year, to $6.4 billion from $7.38 billion a year earlier, though the number of deals was the same in both quarters at 968.

Target recall: Child's pajamas

Target and the Consumer Product Safety Commission issued a product recall for two-piece children's pajama sets. Some 560,000 of the children's pajamas have been sold by Target in stores and online between August 2012 and November 2012. According to the CPSC: “The children's cotton or cotton/fleece pajamas sets fail to meet the federal flammability standards for children's sleepwear, because they do not meet the tight-fitting sizing requirements. This poses a burn hazard to children.” The garment manufacturer is Makalot Garments Co. Ltd., of Taiwan. The CPSC recommends that consumers take the recalled pajamas away from children and return them to any Target for a full refund.

Honda recalls Pilots, Odysseys

Honda said it's recalling 748,000 Pilot and Odyssey vehicles because of a possible problem with their driver's-side airbags. Honda said that the airbags may have been assembled without some of the rivets needed to secure their cover. That could keep them from deploying properly in the event of a crash and increase the possibility of injury. No crashes or injuries have been reported related to the issue. The effected Pilot SUVs were made for the 2009 through 2013 model years, while the Odyssey minivans in question were made for the 2011 through 2013 model years. The automaker says owners should take their vehicles to a dealer as soon as they receive notification.

Liberty takes majority Sirius XM

Liberty Media Corp., which has been trying to take over Sirius XM Radio Inc. for some time, has now bought enough shares in the satellite radio company to give it majority control. The Englewood, Colo., company disclosed in a Securities and Exchange filing that it bought 50 million common shares in the company. It now holds about 2 billion common shares and 1.29 billion convertible shares, according to the filing. Those combined give Liberty a more than 50 percent stake in Sirius. Sirius, based in New York, provides radio programming in vehicles, online and through mobile applications to nearly 24 million subscribers.

Earnings

• Matthews International Corp. said acquisition-related costs contributed to a 27 percent lower first-quarter profit. The North Shore-based maker of bronze and granite memorials said net income was $8.26 million, or 30 cents a share for the period ended Dec. 31, down from $11.29 million, or 40 cents, a year ago. But Matthews said sales rose 3.9 percent to $217.2 million based on growth in each of its memorializaton segments plus benefits from the purchase of Georgia-based Everlasting Granite in May. Terms of that deal weren't disclosed.

Other business news

• Consol Energy Inc. mined 10 percent less coal in 2012, as the company worked to control inventory and idled mines to match production to sales. The Cecil-based company said it produced 56 million tons of coal, down from 62 million in 2011. The fourth-quarter coal number also was down, to 14.3 million tons, from 15.2 million a year ago, but natural gas production rose 5 percent to 41.8 billion cubic feet equivalent. Consol said it expects to produce 55.5 to 57.5 million tons of coal in 2013, and 170 to 180 to Bcfe in gas from its wells.

• Oilfield services company Baker Hughes Inc. said the number of rigs exploring for oil and natural gas dropped by 12 this week to 1,749. The Houston-based company said in its weekly report Friday that 1,316 rigs were exploring for oil and 429 for gas. Four were listed as miscellaneous. A year ago, Baker Hughes counted 2,008 working rigs. Of the major oil- and gas-producing states, North Dakota gained five rigs, Pennsylvania increased by four and Arkansas by two.

— Staff and wire reports