The Legal Tango: Kik Interactive Takes on the SEC
In a dramatic showdown, Kik Interactive Inc. has formally requested a trial date in its ongoing legal battle against the United States Securities and Exchange Commission (SEC). As revealed in court documents dated January 9, this move comes after Kik was charged in June 2019 for allegedly conducting an unregistered securities issuance tied to its $100 million initial coin offering (ICO) back in 2017.
The ICO Roller Coaster
Kik Interactive, known for its popular messaging app, launched its ICO amidst much fanfare, introducing the Kin token which was touted as a utility for enhanced app functionalities. But what seemed like a good idea at the time quickly spiraled into regulatory scrutiny, with the SEC casting a shadow over Kik’s plans.
Regulatory Pressures and Downsizing
The pressure became too much to bear, leading Kik to drastically reduce its operations by September 2019. CEO Ted Livingstone was adamant about fighting the SEC, vowing to continue the battle until the company’s last dollar was spent. However, a plot twist occurred when Kik was acquired by MediaLab, giving them a financial lifeline but not the legal respite they desperately sought.
Seeking a Speedy Trial
Despite facing seemingly insurmountable odds, Kik remains unyielding. Livingstone is eager to go to trial, aiming for a May 2020 start date. However, new court documents suggest that this timeline may be overly optimistic.
Roadblocks Ahead
A recent court order revealed a roadmap to trial that includes preparation work expected to wrap up by June 2020. Compounding the situation, Kik is pushing back against a deposition requested by the SEC, a move that could further stall proceedings.
In response to this deposition tussle, both sides plan to submit a joint letter brief to the court concerning a particular procedural rule and schedule the necessary depositions without missing a discovery deadline set for January 28, 2020. If they can’t meet this deadline, they will have to grovel to the court for additional time.
The Court’s Role in Setting the Stage
Kik has formally urged the court to establish a definitive trial date. The SEC’s stance on this matter is apolitical, leaving the ultimate decision in the hands of the presiding judge.
Looking Ahead: The Status Conference
All eyes are on January 14, when a status conference is scheduled. This pre-trial meeting will give judges the opportunity to evaluate ongoing preparations and potentially set a tentative trial date. Will Kik get its day in court, or will the SEC continue to drag its feet? Only time will tell!
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