Maker Defendants Win Dismissal of ‘Black Thursday’ Class Action

On February 22, Judge Maxine Chesney of the U.S. District Court for the Northern District of California granted a motion to dismiss a putative class action brought against Skadden clients Maker Ecosystem Growth Foundation and Maker Ecosystem Growth Holdings, Inc. The case concerned the MakerDAO system, a decentralized finance protocol built on the Ethereum blockchain. The plaintiff asserted claims for intentional and negligent misrepresentation and negligence, alleging that he and others suffered losses on the system when the price of Ether suddenly collapsed on March 12, 2020 — an event the plaintiff referred to as “Black Thursday.” The court dismissed all claims asserted.