SEC DROPS CASE AGAINST OZY MEDIA! CEO WATSON CLEARED!

U.S. Securities and Exchange Commission Litigation Release No. 26403, dated September 18, 2025.

The SEC filed a civil enforcement action against Ozy Media, Inc. and its CEO, Carlos Watson, on February 23, 2023. On September 18, 2025, the SEC and the defendants jointly stipulated to dismiss the action with prejudice. The SEC stated this dismissal was in its discretion and does not reflect its position on other cases.

In Plain English

Imagine a company was accused of doing something wrong, like not telling the truth to investors. The government's financial watchdog (the SEC) started a case against the company and its boss. Later, the watchdog and the company decided together to drop the case. The watchdog said it was their choice and doesn't mean they think what the company did was okay in general.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. SEC Files Enforcement Action On February 23, 2023, the Securities and Exchange Commission (SEC) initiated a civil enforcement action against Ozy Media, Inc. and its CEO, Carlos Watson. The case was filed in the U.S. District Court for the Southern District of New York under case number 1:23-cv-01424.
2. Joint Stipulation for Dismissal On September 18, 2025, the SEC and the defendants, Ozy Media, Inc. and Carlos Watson, filed joint stipulations to dismiss the enforcement action. This indicates a mutual agreement between the parties to end the litigation.
3. Dismissal with Prejudice The joint stipulations requested that the dismissal be 'with prejudice,' meaning the SEC cannot bring the same claims against these defendants again. This is a final resolution of the specific claims brought in this action.
4. SEC's Discretionary Decision According to the stipulations, the Commission's decision to seek dismissal was 'in the exercise of its discretion.' This phrasing suggests the SEC chose to end the case for its own reasons, not necessarily due to a lack of merit in the original allegations.
5. No Reflection on Other Cases The SEC explicitly stated that the dismissal 'does not necessarily reflect the Commission’s position on any other case.' This clarifies that the decision to dismiss this particular action should not be interpreted as a broader statement on similar matters or the defendants' conduct in other contexts.

The Enforcement Action

The SEC announced the dismissal of its civil enforcement action against Ozy Media, Inc. and its CEO, Carlos Watson, on September 18, 2025. The dismissal, filed via joint stipulations, was made with prejudice and in the SEC's discretion, without necessarily reflecting its position on other cases.

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