U.S. Appeals Court Affirms Ruling Dismissing Uniswap Class Action Suit
The U.S. Court of Appeals for the Second Circuit upheld a lower court's decision to dismiss a class action suit against Uniswap, a decentralized exchange. Key points include:
- The lawsuit, initiated by investors in 2022, accused Uniswap Labs and its venture capital investors of allowing scam tokens on its platform.
- District Court Judge Katherine Polk Failla ruled in favor of Uniswap in 2023, comparing the plaintiffs' arguments to holding payment apps liable for illegal transactions.
- The Second Circuit agreed with Failla, stating it is illogical to hold a smart contract creator responsible for third-party misuse.
- The ruling vacated and remanded only the state law claims back to district court for further review.
- This decision follows the SEC's announcement to close its investigation into Uniswap regarding allegations of operating as an unregistered securities broker and exchange.