The Lido community has approved the proposal "Designated Entity Response to Pending Class Action Against Lido DAO."

ChainCatcher news reports that, according to the Snapshot governance page, the Lido community voted to approve the proposal "Designate Entity to Respond to Pending Class Action Against Lido DAO."

The proposal states that a private plaintiff has filed a class action lawsuit numbered 3:23-cv-06492 in the United States District Court for the Northern District of California, naming "LIDO DAO, a general partnership" as the defendant. The complaint alleges that Lido DAO is a "general partnership operating an Ethereum staking business," and that the LDO token or LDO token transactions are alleged to be securities or securities transactions, with Lido DAO accused of violating securities laws by offering or selling these securities to the public.

On June 27, the court ruled that the plaintiff's actions of serving legal documents to Lido DAO through various publicly available means were lawful, and ordered Lido DAO to respond within 14 days, or face a default judgment on the claims made by the plaintiff.

Therefore, this proposal suggests appointing and funding a Delaware limited liability company, Dolphin CL, LLC ("Dolphin"), to hire legal counsel (currently expected to be Brown Rudnick, led by partner Stephen Palley), without admitting and explicitly disagreeing that Lido DAO is a partnership, association, or other legally recognizable group or entity. The requested funding amount is 200,000 DAI, which is expected to be sufficient to cover the service fees of Dolphin and its legal counsel to draft, submit, and argue in support of a motion to dismiss the claims involving Lido DAO.