Amanda Houghton, Susan Franklin, and Charles Douglas are suing Compound DAO and seven other defendants in the U.S. District Court for the Northern District of California.

In addition, they are seeking class-action status for their lawsuit, which was filed on December 8 and alleges that they were harmed after buying unlicensed COMP tokens.

The plaintiffs claim that the defendants misled them about the potential of earning a profit from COMP tokens, and that the value of the tokens has since declined.

The suit calls for a court ruling that COMP is a security and requests that the defendants be prohibited from selling the tokens and pay compensation and legal costs.