According to BlockBeats, on July 11, the Lido community voted to approve a proposal to "designate an entity to respond to pending class actions against Lido DAO." The proposal shows 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. 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' service of legal documents on 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' claims. Therefore, without recognizing and explicitly 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 limited liability company located in Delaware, 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, submit, and argue a motion in support of dismissing the claims involving Lido DAO.