Lido Community Launches New Proposal to Hire Legal Counsel to Dismiss Class Action Lawsuit Involving Lido DAO

Odaily News According to the Snapshot governance page, the Lido community initiated a vote on the proposal to designate an entity to respond to pending class actions against Lido DAO. The proposal stated that a private plaintiff filed a class action lawsuit numbered 3:23-cv-06492 in the United States District Court for the Northern District of California, listing LIDO DAO, a general partnership as the defendant. In the complaint, Lido DAO was accused of being a general partnership operating an Ethereum staking business, and LDO tokens or LDO token transactions were accused of being securities or securities transactions, and Lido DAO was accused of offering or selling these securities to the public in violation of securities laws. On June 27, the court ruled that the plaintiffs act of serving legal documents to Lido DAO through various public releases was legal, and required Lido DAO to respond within 14 days, otherwise it would face a default judgment on the plaintiffs claim. Therefore, without recognizing and expressly disagreeing that Lido DAO is a partnership, association, or other legally identifiable group or entity, this proposal proposes to appoint and fund Dolphin CL, LLC (Dolphin), a Delaware limited liability company, to hire legal counsel (currently expected to be Brown Rudnick, led by partner Stephen Palley). The requested funding amount is 200,000 DAI, which is expected to be sufficient to pay for the services of Dolphin and its legal counsel to draft, file, and argue a motion in support of dismissing the claims involving Lido DAO. The proposal will close for voting on July 10, and the approval rate is currently 100%.