Sportstrader Class Action Over MLB Cheating Scandal Dropped By Plaintiff

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Update:

• Plaintiff Cody Lucas has voluntarily dismissed his Sportstrader class action alleging MLB cheating scandals defrauded fantasy sports contestants, according to court documents.
• A few weeks ago, the Second Circuit said a federal judge was right to toss a similar suit.
• Lucas does not cite his reasoning but could refile his claims if desired. 

(03/02/2020)

A fantasy baseball player has filed a class action lawsuit against Major League Baseball, MLB Advanced Media, Sportradar, the Houston Astros, and the Boston Red Sox claiming that the recent MLB sign stealing scandal manipulated baseball players’ statistics.

Plaintiff Cody Lucas claims that he has been harmed by the defendants’ misconduct and that the defendants did not monitor the integrity of the data that it sent on to the Daily Fantasy Sports (DFS) companies.

In 2015, it was announced that MLB started to invest in fantasy baseball and fans were encouraged to participate in competitions on the DFS platforms.

Sportradar, one of the defendants in the MLB class action, is in charge of the real-time game statistics of MLB games and provides a data feed to DFS operators, such as FanDuel, the plaintiff states.

“By fans participating in DFS wagering, the MLB gains a quantifiable benefit financially not only through the sharing of contest fees with the DFS platform, but also through larger attendance at games, increased revenue through advertising, and general interest associated with the sport as a whole,” the Sportradar MLB class action lawsuit notes.

The plaintiff alleges that the sign stealing scandal impacted the outcome of thousands of DFS wagering competitions. Lucas also claims that electronic sign stealing has a direct effect on player performance statistics and the teams and players that join in on the practice, taking away from the fairness and integrity of the DFS competitions.

Additionally, the plaintiff says Sportradar did not inform the MLB or DFS operators that a close examination of a team’s home versus away record should have triggered scrutiny related to the statistics and further actions should have been implemented to protect individuals who play the DFS games.

Lucas further maintains that the MLB was liable in the scheme.

The organization allegedly knew of the fraudulent conduct of its teams and failed to sustain its commitment to keep the honesty and integrity of baseball games intact. 

The MLB class action lawsuit states that the league did not enforce its rules which prohibit the use of electronic devices to steal signs, subsequently altering the outcomes of DFS matches.

Even worse, the MLB allegedly did not disclose the wrongful activity until many years after they knew that the teams had used technology to steal signs.

“The MLB’s lack of oversight and its constituent member teams’ cheating destroyed the fairness of DFS wagering competitions,” claims the MLB class action lawsuit.

The MLB allegedly continued to encourage fans to use the DFS system even though they knew that the statistical data that determines the outcomes of the competitions was skewed by sign stealing.

“Plaintiff and other contestants participating in DFS wager competitions, including specifically FanDuel, were induced by Defendants to compete in fraudulent competitions to their financial detriment,” states the MLB class action lawsuit.

The plaintiff argues that he would have not participated in FanDuel’s DFS competitions or would not have made certain wages if he knew that the integrity of the baseball players’ statistical measures were compromised.

Lucas is seeking an award of damages which would recover the amounts of money lost in the baseball cheating scandal, the Sportradar MLB class action lawsuit states.

A similar lawsuit was filed in January of this year by a DFS participant who claims that the corrupt actions of the RedSox and Astros skewed the results of fantasy sports leagues.

Do you participate in Daily Fantasy Sports competitions? Leave a message in the comments section below.

The plaintiff is represented by Robert K. Shelquist and Rebecca A. Peterson of Lockridge Grindal Nauen PLLP and Myles McGuire, Paul T. Geske, Eugene Y. Turin and Timothy P. Kingsbury of McGuire Law PC.

The Sportradar MLB Cheating Class Action Lawsuit is Cody Lucas v. Sportradar, et al., Case No. 0:20-cv-00602, in the U.S. District Court for the District of Minnesota.

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