Triller Stares Down Possible $3.2 Million Default Judgment in Merlin Missing-Compensation Suit

Photo Credit: Solen Feyissa

Triller Group (NASDAQ: ILLR) is staring down a possible $3.2 million default judgment in the missing-compensation lawsuit levied against it by Merlin.That’s according to a new order in the six-month-old action, which accuses Triller of failing to cough up a purportedly due $2.55 million payment (or closer to $3.19 million with interest and costs). We broke down the concise-but-convoluted complaint in detail soon after its filing.

Long story short, the allegedly owed sum stems in part from a most favored nation clause in Merlin’s Triller licensing agreement and only came to light due to details introduced in a separate complaint, levied this time by Sony Music in 2022.

Fast forward to earlier in September, when Merlin submitted a motion for default judgment against Triller. Now, Judge Jeannette Vargas has called on the defendant to “file any opposition to the motion” by October 22nd – with a hearing teed up for November 10th to determine why “an order should not be issued granting a default judgment.”

More immediately, the judge has also ordered Merlin to serve Triller with the default judgment motion “via overnight courier” and to “file proof of such service on the docket.”Said proof wasn’t live at the time of this writing but will seemingly be distinct from the certificate of service “by U.S. Mail” that Merlin confirmed in connection with the above-mentioned September 10th default judgment motion.

DMN reached out to Triller for comment but didn’t receive a response in time for publishing. Nevertheless, it appears safe to say that there’s a lot going on for the company in the background at present.

Last November, for instance, the entity announced the hiring of former TikTok head of product Sean Kim as CEO of its revamped Triller app. Per Kim’s LinkedIn profile, he exited the role in July 2025 – the same month when he noted in an SEC filing that he’d acquired 1.06 million Triller shares “vested…pursuant to certain restricted stock incentive” terms under a December 2024 agreement.

And in late August 2025, Triller acknowledged receiving “a delinquency notification letter” from NASDAQ for failing to submit multiple quarterly earnings reports. A fresh filing extension later, those reports are now due by October 13th; per the announcement once again, Triller “is working diligently to complete its Delinquent Filings and expects to file its Delinquent Filings as soon as practicable.”

Also in August, Triller shelved share-sale plans first outlined in a November 2024 prospectus. When trading concluded today, ILLR was worth 91 cents, down 5% from opening and about 64% from the top of 2025.