According to the Complaint, on or about August 12, 2017, FLiK published a whitepaper to solicit investments that was evaluated by Plaintiffs prior to making their investment in FLiK via the purchase of FLiK Tokens. FLiK Tokens are a form of cryptocurrency issued by FLiK pursuant to an “initial coin offering” or “ICO” between August 20, 2017 and September 20, 2017. The tokens were then traded on a cryptocurrency exchange called coinexchange.com, which acts like a stock market for hundreds of different cryptocurrencies. The value of many cryptocurrencies, like FLiK Tokens, are tied to the development of a related underlying business or technology.

The Complaint alleges that the FLiK ICO and sale of FLiK Tokens were the sale of unregistered securities under controlling federal law, and as such, Defendants have participated in an unregistered sale of securities in violation of the Securities Act, and are liable to Plaintiff and the Class for rescission and/or compensatory damages.

On May 4, 2020, the Court dismissed all claims against one of the Individual Defendants. On May 20, the Court dismissed the remaining claims. Plaintiff filed a notice appealing the Court's Final Judgment on June 12, 2020. The appeal was dismissed on August 18 for want of prosecution. On September 8, the Court of Appeals reinstated the appeal.