U.S. Securities and Exchange Commission v. Crowd Machine, Inc.

Background

The court considered an administrative motion to file documents under seal and Anne Osborne’s supporting declaration. The order concerned documents submitted in connection with defendants’ opposition to the Securities and Exchange Commission’s motion for monetary relief.

Reasons for Sealing

The court found compelling reasons sufficient to overcome the presumption that court filings should be publicly accessible. It explained that confidential business information, including financial terms and business strategies, can justify sealing. It also recognized that disclosure of personally identifying information may create risks that outweigh the public’s access interest. The court further stated that attorney-client privilege and the work-product doctrine are generally accepted as compelling reasons supporting sealing.

Ruling

The court granted the administrative motion. It directed the Clerk of Court to accept the following materials under seal:

- The declaration of Anne Osborne, with redactions for confidential financial and commercially sensitive information and personally identifying information. - Christian Tregillis’s expert report, with redactions for confidential financial and commercially sensitive information. - Documents relied on in Tregillis’s expert report, entirely under seal, based on confidential financial and commercially sensitive information and proprietary product information. - Tregillis’s supplemental expert report, with redactions for confidential financial and commercially sensitive information. - Metavine Genesis release notes, entirely under seal, based on confidential financial and commercially sensitive information and proprietary product information. - Defendants’ written responses to the SEC, with redactions for confidential financial and commercially sensitive information and personally identifying information. - A document produced to the SEC, with redactions for confidential financial and commercially sensitive information, personally identifying information, and proprietary product information. - A letter from a public accounting and consulting firm concerning ISRS 4400, entirely under seal, based on confidential financial and commercially sensitive information. - Production cover letters produced to the SEC, with redactions for confidential financial and commercially sensitive information and personally identifying information. - Defendants’ current financial information, entirely under seal, based on confidential financial and commercially sensitive information.

This order addressed sealing and public access to filings; it did not decide the underlying claims or the SEC’s motion for monetary relief. Judge Haywood S. Gilliam, Jr. signed the order.