According to BlockBeats, on July 6th, the Lido community initiated a vote on a proposal titled 'Designated Entity Responds to Pending Class Action Lawsuit Against Lido DAO'. The proposal reveals that a private plaintiff has filed a class action lawsuit, numbered 3:23-cv-06492, in the Northern District Federal District Court of California, USA, with 'LIDO DAO, a general partnership' listed as the defendant.
In the complaint, Lido DAO is accused of being a 'general partnership operating Ethereum staking business', and LDO tokens or LDO token transactions are alleged to be securities or securities transactions. Lido DAO is accused of violating securities laws by offering or selling these securities to the public.
On June 27th, the court ruled that the plaintiff's act of serving legal documents to Lido DAO through various publicly published methods was legal and required Lido DAO to respond within 14 days, otherwise, it would face a default judgment on the claims made by the plaintiff.
Therefore, this proposal, without admitting and explicitly disagreeing that Lido DAO is a partnership, association, or other legally recognizable group or entity, proposes to appoint and fund a Delaware-based limited liability company, Dolphin CL, LLC ('Dolphin'), 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 Dolphin and its legal counsel's service fees, to draft, submit, and argue motions to support the dismissal of the lawsuit involving Lido DAO.