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$720K USD and 7,280,000 DK Dollars in DraftKings MDL Settlement

Outcome: $720,000 and 7,280,000 DK Dollars for class members

In re: Daily Fantasy Sports Litig., Case No. 16-MD-2677 in the United States District Court for the District of Massachusetts

DraftKings, a Daily Fantasy Sports (DFS) platform, faced several class action lawsuits alleging false advertising. The lawsuit revolved around the practices and entries of authorized participants involved in DFS competitions on DraftKings’ platform since June 12, 2015.

The lawsuits were consolidated into a Multi-District Litigation (MDL), resulting in DraftKings committing to injunctive relief and the creation of a settlement fund.

Main Settlement Provisions

  • A settlement fund consisting of 7,280,000 DK Dollars for active account holders.
  • A second settlement fund consisting of U.S. $720,000 for claimants without an open account.
  • Injunctive relief in the form of “Procedures and Restrictions” on DraftKings’ DFS platform, including limits on account activity, including a cap on deposits and entry numbers; identification of “highly experienced” players and prohibition against employee participation in paid contests.

The resolution notably impacts members of the Settlement Class who are United States residents who made a first-time deposit with DraftKings before January 1, 2018, and who are not net lifetime winners based on DraftKings’ records. Members of the class had to to submit a complete and timely claim form to either claim DK Dollars or U.S. Dollars.

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