March 24, 2020 Kik and the SEC look to secure a pre-trial judgment and finish their legal battle.

The software company Kik has decided to no longer challenge the SEC’s original case made against Kik in open court and has instead decided alongside the US financial regulator to pursue a pre-trial judgment. Following Kik’s $100 million unregistered token sale in 2017, the SEC took action against the company, stating that Kik had infringed Section 5 of the Securities Act that requires all securities offerings to be registered. In response, Kik claimed that it had bifurcated its sale into two distinct rounds, a pre-sale in September 2017 for which it filed a Form D notice and a subsequent public sale that did not require any registration since the company did not pledge any investment returns for participants. In part due to the SEC’s action, Kik wound-down its messaging application in September 2019. Until now, Kik had taken a far more aggressive approach, accumulating a $225 million legal defense fund, while its CEO, Ted Livingston stated that Kik would continue its defense until the SEC was devoid of financial resources. On March 20, both entities asked for a summary judgment from the District Court of the Southern District of New York in an effort to avoid a full trial.