DKNG.US
id: 613
DraftKings (DKNG) $10M Investor Settlement
Eligible claimants can submit their claims for compensation.
$10,000,000
Cash SettlementD. Massachusetts
Court23-CV-10524
Case number08/11/2021
Class period Start03/09/2023
Class period End07/21/2025
Claim deadlineDraftKings ($DKNG) has agreed to settle $10M with investors to resolve claims that it operated an unregistered securities exchange and hid the nature of its NFTs sold on the DraftKings Marketplace.
Outline
In 2021, DraftKings launched the sale of its NFTs, restricting the resales to its own marketplace. These restrictions raised concerns about the liquidity and long-term value of the NFTs as potential regulatory violations. Following this, DraftKings faced a lawsuit from investors over selling unregistered securities.
Timeline
- August 11, 2021 – DraftKings launched its NFT marketplace, offering digital collectibles featuring athletes.
- 2022 – DraftKings restricted NFT resales to its platform, limiting liquidity and market value. Reports surfaced about potential regulatory violations, increasing uncertainty around the NFTs’ status as securities.
- March 2023 – Investors filed a lawsuit, alleging that DraftKings’ NFTs were unregistered securities.
- February 26, 2025 – DraftKings agreed to a $10 million settlement to resolve investor claims.
Background
In August 2021, DraftKings launched its NFT Marketplace, allowing users to buy and sell digital collectibles featuring professional athletes. The company promoted these NFTs as valuable assets, attracting buyers who expected to profit from reselling them.
However, investors later discovered that DraftKings restricted NFT transactions to its own platform, preventing users from transferring or selling their assets on external marketplaces.
Additionally, investors found out that the company marketed these NFTs as investments while failing to register them as securities, making it difficult for buyers to assess the risks involved.
By March 2023, investors filed a lawsuit accusing DraftKings of operating an unregistered securities exchange and misleading them about the NFTs’ resale potential.
What Can Investors Expect Now?
DraftKings ($DKNG) has agreed to settle $10M with investors to resolve claims that it operated an unregistered securities exchange and hid the nature of its NFTs sold on the DraftKings Marketplace.
If you were affected by this situation, you may be eligible to file for a payout and receive your share of the settlement. Check the FAQ section below for details on eligibility and claims.
Case Status
Accepting Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Financial Misrepresentation,
Fraud,
Failure to Disclose,
Malpractice,
Negligence,
Breach of Fiduciary duty,
Omissions
Suspected Party
Directors,
Management,
Shareholder,
Influencer,
Investment Bank,
Service Provider
Security Type
Crypto Asset
Trade Direction
Long
Filing date
03/09/2023
Lead Plaintiff Deadline
05/11/2023
Plaintiffs
Justin Dufoe
Attorneys
Berman Tabacco (Boston, MA), Hannafan & Hannafan, Ltd. (Chicago, IL), Kirby McInerney LLP (Chicago, IL)
Defendants
Jason D. Robins, Jason K. Park, Matthew Kalish,
Judge
Hon. Denise J. Casper
Administrator
A.B. Data Ltd
Settlement agreement date
2025-02-26
Court hearing date
07/30/2025
Exclusion deadline
07/09/2025
Objection deadline
07/09/2025
Attorney fee
$3,400,000
Trades matching type
FIFO
Frequently Asked Questions
Who is eligible for this settlement?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?