SEC Ordered to Pay $1.8M After Debt Box Lawsuit Dismissed

May 29, 2024 at 02:26 PM GST 1 min read News

SEC ordered to pay $1.8M in legal and receiver fees after Debt Box lawsuit dismissed.
Judge Robert Shelby’s ruling includes $1M in legal costs and $750K in receiver fees.
The case was dismissed without prejudice; the SEC may revive the lawsuit later.

A federal judge has ordered the US Securities and Exchange Commission (SEC) to pay attorney and receivership fees of over $1.8 million. This ruling concerns the SEC’s civil lawsuit against Digital Licensing, a business known as Debt Box.

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The U.S. District Court for the District of Utah has officially dismissed the SEC's case against us without prejudice. This means the case is closed, and any future action by the SEC would have to go… pic.twitter.com/aGiNVxMYbz
— D.E.B.T. (@TheDebtBox) May 28, 2024

Breakdown of the Fees

On May 28, the United States District Court for the District of Utah Judge Robert Shelby issued an order directing the SEC to pay roughly $1 million in legal and other costs. Per the judgment, the SEC must also pay $750,000 in receiver charges and expenses.

The SEC filed a lawsuit against Digital Licensing in 2023 citing several violations, but the court fined the SEC a significant sum of money and simply rejected the claim. The issue is resolved, but the SEC retains the right to revive it later because of the dismissal without prejudice.

This ruling represents a notable development in the SEC and Digital Licensing legal proceedings. The SEC’s financial burden reflects the court’s opinion regarding the merits and expenses of the legal action. The decision could affect the SEC’s litigation tactics and resource allocation going forward in similar instances.