Dufoe v. DraftKings Inc., et al, 23-cv-10524 (D.Mass.).
Case Overview
| Status: | Status: Pending |
| Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
| Related Practices: | Related Practices: Commodities, Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of Massachusetts, No. 23 Civ. 10524, on behalf of those who acquired non-fungible tokens (“NFTs”) from DraftKings Inc. (“DraftKings” or the “Company”) during the period from August 11, 2021 through the present (the “Class Period”). Investors have until May 8, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
DraftKings Inc. operates as a daily fantasy sports contest and sports betting company.
The lawsuit alleges that, throughout the Class Period: (1) the NFTs were securities for which DraftKings unlawfully failed to file a registration statement; (2) DraftKings ensured that money invested by class members stayed on DraftKings’ private and exclusively controlled marketplace, propping up the market for and overall valuation of DraftKings’ NFTs; and (3) investors have suffered significant damages.
The lawsuit alleges that this conduct violated Sections 5, 12(a)(1), and 15 of the Securities Act of 1933, Sections 5, 15(a)(1), 20(a), and 29(b) of the Securities Exchange Act of 1934, and Sections 201(a) and 301 of Chapter 110A of Massachusetts General Laws. DraftKings, Chief Executive Officer Jason D. Robins, Chief Financial Officer Jason K. Park, and President of North America Matthew Kalish are named as defendants.
DraftKings Inc. operates as a daily fantasy sports contest and sports betting company.
The lawsuit alleges that, throughout the Class Period: (1) the NFTs were securities for which DraftKings unlawfully failed to file a registration statement; (2) DraftKings ensured that money invested by class members stayed on DraftKings’ private and exclusively controlled marketplace, propping up the market for and overall valuation of DraftKings’ NFTs; and (3) investors have suffered significant damages.
The lawsuit alleges that this conduct violated Sections 5, 12(a)(1), and 15 of the Securities Act of 1933, Sections 5, 15(a)(1), 20(a), and 29(b) of the Securities Exchange Act of 1934, and Sections 201(a) and 301 of Chapter 110A of Massachusetts General Laws. DraftKings, Chief Executive Officer Jason D. Robins, Chief Financial Officer Jason K. Park, and President of North America Matthew Kalish are named as defendants.
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Case Updates
Judge holds digital trading cards are securities under the Howey test in KM lawsuit against DraftKings
U.S. District Judge Denise Casper has held that digital trading cards sold by fantasy sports company DraftKings are securities under the U.S. Supreme Court’s Howey test, denying the company's motion to dismiss a class action lawsuit led by KM Partner Tony Fata. The lawsuit alleges that, during the class period, DraftKings sold unregistered securities and ensured that money stayed on DraftKings’ private and exclusively controlled marketplace, propping up the market for an overall valuation of DraftKings’ NFTs and significantly harming investors.