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

Background

The U.S. Securities and Exchange Commission filed an administrative motion asking the court to consider whether another party’s materials should be sealed. The motion concerned materials submitted with the Commission’s motion for monetary relief. The defendants were Crowd Machine, Inc., Metavine, Inc., and Craig Derel Sproule; Metavine Pty. Ltd. was identified as a relief defendant.

The court considered the Commission’s motion, the defendants’ response, and the declaration of Anne Osborne supporting the request.

Court’s reasoning

The court found compelling reasons sufficient to overcome the presumption favoring public access to court documents. It stated that confidential business information, including financial terms and business strategies, can satisfy the compelling-reasons standard.

Ruling

Judge Haywood S. Gilliam, Jr. granted the Commission’s administrative motion. The clerk was directed to accept the following materials under seal or with redactions:

- Exhibit A, the defendants’ September 30, 2022 responses to Interrogatory No. 13, with Attachment A under seal. - Exhibit B, the December 7, 2022 deposition of Ann Osborne, with redactions. - Exhibit C, the January 28, 2023 deposition of Craig Sproule, with redactions. - Exhibit D, the defendants’ October 7, 2022 interrogatory responses, with redactions. - Exhibit E, Osborne Deposition Exhibit 4, with the entire document under seal. - The declaration of Avron M. Elbaum, with redactions to the declaration and Exhibits 1 through 14 under seal.