Kik Interactive finally decided to settle its legal battle with the U.S. Securities and Exchange Commission (SEC) in connection with its $100 million unregistered initial coin offering (ICO) in 2017
The Canada-based owner and operator of a mobile messaging app called Kik Messenger agreed to pay a penalty of $5 million to the SEC to settle the case, according to the agreement on a proposed judgment for injunctive and monetary relief submitted to the court by both parties.
The agreement also prohibits Kik from future violations of federal securities law. Below is a text from the court filing.
“The parties have reached agreement on a proposed judgment, and file herewith a Consent executed by Kik Interactive Inc. (Exhibit A) and a proposed Final Judgment (Exhibit B). The proposed Final Judgment, if approved by the Court, would permanently enjoin Kik from committing future violations of Section 5, pursuant to Section 20(b) of the Securities Act of 1933, 15 U.S.C. § 77t(b); impose a conduct-based injunction, as set forth in the proposed Final Judgment, under Section 21(d)(5) of the Securities Exchange Act of 1934, 15 U.S.C.§ 78u(d)(5); and require Kik to pay a penalty of $5 million, pursuant to Section 20(d) of theSecurities Act, 15 U.S.C. § 77t(d). The proposed Final Judgment would conclude this action,”
The proposed settlement still requires the approval of the presiding District Court Judge Alvin K. Hellerstein. If approved, it will end the year-long legal dispute between Kik and the SEC.
