[mark3141]

Kik Responds To SEC Complaint

> Eileen Lyon, Kik's General Counsel commented, "For the reasons set forth in our Wells Submission, the SEC's complaint against Kik is based on a flawed legal theory. Among other things, the complaint assumes, incorrectly, that any discussion of a potential increase in value of an asset is the same as offering or promising profits solely from the efforts of another; that having aligned incentives is the same as creating a 'common enterprise'; and that any contributions by a seller or promoter are necessarily the "essential" managerial or entrepreneurial efforts required to create an investment contract. These legal assumptions stretch the Howey test well beyond its definition, and we do not believe they will withstand judicial scrutiny."

https://www.prnewswire.com/news-releases/kik-responds-to-sec...

[solveit]

Well they certainly have the money to fight the SEC in court. It'll be interesting to see how this pans out, although I'm not very optimistic for Kik.