Quick TakeA new lawsuit was filed earlier this week in a San Francisco federal court against three MakerDAO-related entities as a proposed class action.Plaintiff says that the loss of collateral in a CDP was liquidated because of flaws in software design and undisclosed or misrepresented risks that allowed bots to purchase collateral for zero cost without competitive bidding in an auction process.Factual and legal issues may make recovery challenging for the plaintiff, but the defendants face longer-term potential risks arising out of adverse factual findings regarding their relative degree of decentralization and control over DAI and MKR.
