8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549



                                    FORM 8-K

                                 CURRENT REPORT

                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

                      January 18, 2002 (January 15, 2002)
                      -----------------------------------
                Date of Report (Date of Earliest Event Reported):

                       DIGITAL COURIER TECHNOLOGIES, INC.
                       ----------------------------------
             (Exact name of registrant as specified in its charter)

          Delaware                       0-20771                87-0461586
          --------                       -------                ----------
(State or other jurisdiction of  (Commission File Number)    (I.R.S. Employer
 incorporation or organization)                           Identification Number)


348 East 6400 South, Suite 220, Salt Lake City, Utah 95035
- ----------------------------------------------------------
(Address of principal executive offices)        (Zip Code)

Registrant's telephone number, including area code: (801) 266-5390
                                                    --------------

                                       N/A
                                       ---
          (Former Name or Former Address if Changed Since Last Report)


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Item 5.  Other Events

         On January 7, 2002,  the Company,  filed a lawsuit in the United States
District  Court for the  Northern  District  of  California  in  response to the
"Consent  Statement"  filed in December by a group of shareholders  led by James
Egide, the Company's onetime Chairman and CEO (the "Egide Group"). The complaint
alleges  the  Consent  Statement  is  false  and  misleading  and  violates  the
Securities Exchange Act of 1934 and Securities and Exchange Commission Rules. In
addition,  the  complaint  charges  that the Consent  Statement  omits  material
information about DCTI. The Company seeks damages and an injunction  prohibiting
the Egide Group from soliciting  shareholder consents and prohibiting the voting
of any shares  pursuant to the Consent  Statement  until the Egide Group files a
truthful and non-misleading Consent Statement.

         On January 15, 2002, the Company  converted all  outstanding  shares of
Series B Preferred Stock,  which had been issued on December 31, 2001 to each of
the then current members of the Company's Board of Directors,  to one share each
of common stock of the Company.  A total of 4 shares of common stock were issued
pursuant to the conversion of the Series B Preferred  Stock. No shares of Series
B Preferred Stock remain outstanding.


         On  January  18,  2002,  the   registrant   issued  the  press  release
incorporated by reference herein as Exhibit 99.

                                   SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended,  the  registrant  has duly caused this Current Report on Form 8-K to be
signed on its behalf by the undersigned hereunto duly authorized.


Date:  January 18, 2002         DIGITAL COURIER TECHNOLOGIES, INC.

                                By: /s/ John J. Hanlon
                                ----------------------
                                        John Hanlon
                                        President and Chief Financial Officer



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                                  Exhibit Index



EXHIBIT NO.       DESCRIPTION OF EXHIBIT
- -----------       ----------------------
99                Text of press release dated  January 18, 2002  announcing  the
                  lawsuit and conversion of Series B Preferred Stock.



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EX-99

DCTI ANNOUNCES LAWSUIT AGAINST EGIDE GROUP AND CONVERTS SERIES B PREFERRED STOCK

         Salt Lake City, Utah - January 18, 2002--Digital  Courier Technologies,
Inc.  (OTC:  DCTI)  announced  today  that it has filed a lawsuit  in the United
States District Court for the Northern District of California in response to the
false  and  misleading  "Consent  Statement"  filed  in  December  by a group of
shareholders  led by James Egide,  the Company's  onetime  Chairman and CEO (the
"Egide  Group").  The  complaint  alleges  the  Consent  Statement  is false and
misleading and violates the  Securities  Exchange Act of 1934 and Securities and
Exchange  Commission Rules. In addition,  the complaint charges that the Consent
Statement omits material information about DCTI. The Egide Group wrongly charges
that current management, which has served only a brief time, with responsibility
for DCTI's cash flow and other  financial  problems  that have resulted from the
Company's  being  required to write down the value of various  acquisitions  and
incur charges for uncollectible  chargebacks and credit card association  fines.
These write downs total more than $188 million and the Company has incurred over
$7 million in  uncollectible  chargebacks and fines.  Management  believes these
problems are the result of actions taken by Egide and other members of the Egide
Group who were formerly responsible for managing DCTI. The Company seeks damages
and an  injunction  prohibiting  the Egide  Group  from  soliciting  shareholder
consents  and  prohibiting  the voting of any  shares  pursuant  to the  Consent
Statement  until the Egide Group  files a truthful  and  non-misleading  Consent
Statement.

         "We believe the story told by the Egide Group in the Consent  Statement
is incomplete,  and so  dramatically  distorts the facts to make it false," said
John Hanlon, DCTI's President and Chief Financial Officer. We want all of DCTI's
shareholders to have a complete and true  understanding of the facts before they
cast any  vote,"  continued  Hanlon,  "and we intend to ask the Court to aid the
shareholders  by  requiring  the Egide Group to correct  their  filing."  Hanlon
further added,  "DCTI hopes the shareholders will read the letter DCTI issued on
January 3, 2002  before  deciding  whether  to vote to allow the Egide  Group to
takeover DCTI."

         DCTI also  announced  today that on January 15, 2001,  it converted all
outstanding  shares of Series B Preferred Stock,  issued on December 31, 2001 to
each current member of the Board of Directors,  to a total of 4 shares of common
stock.  According to Hanlon,  "We only  authorized  the issuance of the Series B
Preferred Stock as a short-term  mechanism to protect the  shareholders  against
the Egide  Group's  false  Consent  Statement  in the event the Egide  Group was
permitted,  over the Holidays,  to commence soliciting  shareholders before DCTI
had an opportunity to respond.  We wanted to ensure that all shareholders had an
opportunity to gain a more complete and true  understanding  of the facts before
they were  solicited to cast any vote." Since December 31, 2001, the Company has
taken several actions to ensure a fair election process. The Company has filed a
letter to  shareholders  with the SEC and has taken  other  steps to inform  the
shareholders  of key facts,  including  the fact that Egide was  Chairman of the
Board and CEO when certain  acquisitions  were consummated for which the Company
has had to report  more  than $188  million  in write  downs and that  Egide was
Chairman  and CEO when  various  merchants  were  allowed to  process  with DCTI
without  proper   authorization,   which  has  cost  DCTI  over  $7  million  in
uncollectible chargebacks and fines.

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         Hanlon  continued,  "Now that we have had an opportunity to communicate
to shareholders  at least part of the story they should hear before voting,  and
have had an opportunity  to initiate  legal action against the Egide Group,  the
Series B Preferred Stock is no longer needed to protect the shareholders and the
Board Members have redeemed their shares."

         About DCTI
         DCTI is at the forefront of Internet payment  technology.  A recognized
specialist in risk management and fraud control, DCTI provides secure, reliable,
and fully  integrated  payment  software  and  systems for  Internet  merchants,
financial institutions,  and merchant service providers. Payment features of the
DCTI system include advanced validation, fraud screening, payment authorization,
settlement, and real-time reporting. DCTI's notable client base and affiliations
include U.S.  and  international  banks and  merchants  and ongoing  development
partnerships with industry leaders such as Certegy,  Global Payments,  and TSAI.
For more information, please visit www.dcti.com.

         Investor Contact for DCTI:
         John  Hanlon,  President  and  Chief  Financial  Officer,  DCTI,  (801)
266-5390.





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