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DraftKings NFTs class action lawsuit overview:
- Who: Justin Dufoe filed a class action lawsuit against DraftKings Inc. and three of its executives.
- Why: Dufoe claims DraftKings harms investors by allegedly selling non-fungible tokens on its DraftKings Marketplace that he argues constitute as unregistered securities.
- Where: The class action lawsuit was filed in Massachusetts federal court.
DraftKings is operating an unregistered securities exchange by selling non-fungible tokens (NFTs) on its DraftKings Marketplace, a new class action lawsuit alleges.
Plaintiff Justin DuFoe claims the DraftKings NFTs constitute as unregistered securities and that many of the investors who buy them “lack the technical and financial sophistication necessary to evaluate the risks associated with their investment.”
DuFoe argues he and other consumers purchased DraftKings NFTs during its initial public offerings of them, with the expectation that the companys’ NFT platform would allow them to “realize profits.”
“The profits would be realized when Plaintiffs and the Class would sell their NFTs on the secondary market platform that DraftKings solely owned and managed,” the DraftKings class action states.
DuFoe claims he and others were ultimately “entirely dependent” on the managerial efforts of DraftKings both when they purchased the NFTs and later sold them on a secondary market controlled by the company.
DraftKings failed to register NFTs as securities, says class action
DraftKings “had actual knowledge of facts” indicating that the NFTs they promoted and sold were considered securities under federal and state securities laws, yet failed to register them as such, the DraftKings class action alleges.
“Defendants reaped, or will reap, hundreds of millions of dollars in profits from their unregistered securities sales,” the DraftKings class action states.
DuFoe wants to represent a nationwide class of all persons who have purchased or otherwise acquired a DraftKings NFT since August 11, 2021.
DraftKings is accused of violating the Securities Act of 1933, the Securities Exchange Act of 1934, and a pair of Massachusetts general laws.
Plaintiff is demanding a jury trial and requesting an award of rescissory damages and interest thereon for himself and all class members.
A separate class action lawsuit was filed against DraftKings in January by a consumer arguing the company didn’t pay users properly following a National Football League game that was canceled on Jan. 2.
Have you purchased or otherwise acquired a DraftKings NFT? Let us know in the comments!
The plaintiff is represented by Patrick T. Egan and Justin N. Saif of Berman Tabacco, Anthony F. Fata of Kirby McInerney LLP, and Blake T. Hannafan of Hannafan & Hannafan, Ltd.
The DraftKings NFTs class action lawsuit is Dufoe, et al. v. DraftKings Inc., et al., Case No. 1:23-cv-10524, in the U.S. District Court for the District of Massachusetts.
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8 thoughts onDraftKings class action claims company operates unregistered securities exchange by selling NFTs
Yes I purchased drafting nfts
I had an account with Draft KIngs in 2022.
I have an account that was closed with several hundred dollars of NFTs inside of it, as well as hundreds of dollars in credits, etc. They will not comp me for anything and actually wont even reply to my emails and inquiries. So add me to this lawsuit because I would love to see someone sue the smoke outta this company if crooks!
I have over $200 worth of NFTs that DraftKings has been holding hostage since they decided to “restrict” my account for my protection, of course they still let me wager that day and took that money too. Was told in 6 months I would have access to them again which was May 15th. I have tried just a couple more times to ask and get the same exact generic email responses I got 6 months ago. You can not speak with a live person and they refuse to even acknowledge my NFTs. I have also made sure to save and archive all the information and correspondence with my situation and pretty sure they haven’t had a set of human eyes even look at it.
I would be very happy to share what I have and my experience as their basis for restricting me(for my protection yet still was able to wager afterwards) makes zero sense and again now they have been withholding my NFTs for over 6 months and even still won’t acknowledge the issue and probably the same exact emails I got 6 months ago that just say “Sorry we do appreciate you business but restricted until May 15th, any questions in the meantime”, which I had many, “please feel free to reach out to us” except that you can’t and they don’t respond.
I have logged in today and it’s going over some of the things I would like some information on the Purdue pharmaceutical lawsuit to s
I have logged in today and it’s going over some of the things I would like some information on the Purdue pharmaceutical lawsuit to see how it’s proceeding and information on the class action suit against the chicken companies the high prices
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