Uniswap Class Action Dismissal Upheld

U.S. Appeals Court Largely Upholds Dismissal of Uniswap Class Action

• The U.S. Court of Appeals for the Second Circuit upheld most of a 2023 decision dismissing a class action lawsuit against Uniswap.
• Investors sued Uniswap Labs in 2022, alleging harm from scam tokens on its platform.
• Judge Katherine Polk Failla initially dismissed the case, comparing it to holding Venmo liable for misuse.
• The Second Circuit agreed that smart contract drafters cannot be held liable under the Exchange Act for third-party misuse.
• State law claims were remanded to lower courts in New York, North Carolina, and Idaho.

The Second Circuit’s decision supports Judge Failla’s ruling that Uniswap is not liable under federal securities laws, though state law claims will be reconsidered.