According to BlockBeats, on July 11, the Lido community voted in favor of a proposal to 'appoint an entity to respond to the pending class action lawsuit against Lido DAO'. The proposal revealed that a private plaintiff had filed a class action lawsuit, numbered 3:23-cv-06492, in the Northern District Federal District Court of California, USA, listing 'LIDO DAO, a general partnership' as the defendant. In the complaint, Lido DAO was accused of being a 'general partnership operating Ethereum staking business', and LDO tokens or LDO token transactions were alleged to be securities or securities transactions. Lido DAO was accused of violating securities laws by offering or selling these securities to the public.
On June 27, 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, the proposal, without admitting and explicitly disagreeing that Lido DAO is a partnership, association, or other legally recognizable group or entity, proposed 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 dismiss the lawsuit involving Lido DAO.