Three plaintiffs have filed a lawsuit against Compound DAO and seven other defendants, alleging that they suffered damages after buying unlicensed COMP tokens.

The suit, which seeks class-action status, was filed in the U.S. District Court for the Northern District of California on December 8, and lists Amanda Houghton, Susan Franklin, and Charles Douglas as plaintiffs on behalf of other COMP token holders.

Furthermore, the plaintiffs allege that the defendants made false and misleading statements about the prospect of profiting from holding COMP tokens, and claim that the price of COMP has since collapsed.

They are seeking a court declaration that COMP is a security, and are requesting that the defendants be ordered to stop selling these tokens and pay damages and legal fees.