The lawsuit filed against DeFi platform Maker by its users was dismissed by the judge.
The $28 million “Black Thursday” lawsuit filed by crypto investors against DeFi company Maker has been dismissed by a US judge. Some of Maker’s statements reportedly put users in serious harm.
US Judge Rejects Case Against Maker
A federal judge has dismissed a lawsuit against Maker, one of the largest decentralized finance (DeFi) protocols, according to a court document submitted Wednesday. This dismissed the DeFi giant’s class action lawsuit claiming that investors inflicted about $8 million in losses due to the platform’s misrepresentation of risks.
The “Black Thursday” lawsuit, filed in April 2020, alleged that Maker-related organizations, including the Maker Ecosystem Growth Foundation, misrepresented collateralized debt positions on the platform as safer investments than other assets.
The Maker Ecosystem Growth Foundation was dissolved as part of a strategy directed by its founder, Rune Christensen, to decentralize the protocol and delegate operations to a decentralized autonomous organization called MakerDAO.
Judge Maxine M. Chesney of the U.S. District Court for the Northern District of California dismissed the complaint with the following statement:
“Because Maker Growth [Foundation] has been dissolved, it is not a suitable defendant and therefore does not have the power to sue. Plaintiff did not submit sufficient facts to support each of his claims for assistance.”
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