With all the new lawsuits being brought against Daily Fantasy Sports (DSF) providers FanDuel and DraftKings, it is hard to keep up with who is getting sued and why. It seems that almost every week, we hear about a new lawsuit against one of the DFS companies being brought up in a different state for different reasons. Now that eighty cases have been filed, it has been up to prosecution and defense teams to decide where these cases were to be litigated. To save time, effort, and tax dollars, the panel decided it would be best to centralize all lawsuits into Massachusetts Federal Court. Some other locations that committee considered besides Massachusetts include New York, Illinois, and Florida.
According to an article by Law360, there has been 80 pending cases that have either been included in motions for consolidation or identified as related actions. Of these 80 cases, 42 of them allege insider trading, 36 involve alleged illegal gambling, and 8 of them allege bonus fraud. For those who are a little unfamiliar with the definitions of these legal terms, here's a quick review:
-Illegal Trading is defined as the buying or selling of a security by someone who has access to material, nonpublic information about the security.
-Illegal Gambling is a term to describe any illegal forms of gambling. These "illegal gambling" laws are different in each state with different definitions of what is legal and illegal and how it will be punished.
-Bonus Fraud are being filed over allegedly misleading promotional programs, which these claims are only being brought against DraftKings.
Although the panel has finally decided where it will begin these lawsuits, there is till no indication of when actual litigation, if any, will occur. That being said, these lawsuits are in the very beginning stages of the legal process and shouldn't expect to hear any settlements for months or even years. It will be interesting to see what cases and potential claims will hold in court, if any, and to see how this all plays out. So those of you still thinking they might want to file a lawsuit or join one of the lawsuits against DraftKings or FanDuel, now is the time!
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