E-Scooter Company Go X Can’t Sidestep SEC Enforcement Action

SEC fraud allegations against an e-scooter rental company and two executives will withstand the defendants’ bid to toss the case or relocate it to a different Florida district court, a federal judge in Miami ruled.

Investments in the e-scooters offered by Cheetah X Inc., which does business as Go X, qualified as securities transactions under federal law because they involved the expectation of profits from defendants’ entrepreneurial or managerial efforts, Judge Beth Bloom in the US District Court for the Southern District of Florida said in an order Monday.

Bloom pointed to the SEC’s allegations that the company’s CEO oversaw ...