A Decentralized Autonomous Organization (DAO) is an organization in which the traditional business management scheme is replaced by blockchain technology. While DAOs function like corporations in some ways, they replace board members with code and leave business decisions up to token-holders who exist as nodes along the blockchain. No single entity owns the DAO, and the organization’s day-to-day operations are executed via smart contracts. This note introduces readers to DAOs, provides insights into how major industry players and regulators are interacting with them, and speculates on how DAOs may influence the future of corporate law.
Read MoreIn Laborers’ Local #231 Pension Fund v. Cowan, No. 17-478, 2018 BL 85103 (D. Del. Mar. 13, 2018), the court granted Rory Cowan and his co-executives’ (“Defendants”) motion to dismiss Laborers’ Local #231 Pension Fund’s (“Plaintiffs”) amended complaint. The court held Plaintiffs failed to state a claim in violation of the Securities Exchange Act of 1934 (the “Exchange Act”) because they failed to allege “a misleading or false statement or omission” in the proxy statement.
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