Lido DAO is voting to appoint an entity to respond to a class-action lawsuit filed in the U.S. District Court for the Northern District of California. The lawsuit, filed on April 3, alleges that Lido DAO violated security laws by operating as a general partnership and unlawfully offering LDO tokens to the public.
On June 27, the court confirmed that Lido DAO was served via public postings and was given 14 days to respond, with potential default judgment looming if it fails to act. The community is voting on a proposal to authorize Dolphin CL, LLC to file a motion to dismiss the lawsuit without serving as Lido DAO’s general representative.
The proposal has gained significant support, with 51 million votes in favor, representing 100% of the votes cast so far. Notably, the voting process underscores the community’s proactive approach to mitigating legal risks.
Amid this legal uncertainty, LDO’s price has dipped by 4.12% in the past day, reaching $1.55. Over the past week, the token’s value plunged 20.86%, and the monthly decline stands at 30.66%, reflecting bearish market sentiments.
The outcome of this vote is critical for Lido DAO’s operations and could set a precedent for how decentralized organizations handle legal challenges.
