DraftKings has agreed to settle a class action lawsuit which alleged it violated Federal Securities Law when it sold NFTs on its marketplace, according to a Federal court filing on Wednesday.
The settlement, which was negotiated by both parties “at an arm’s length,” would see the company pay $10 million cash to a settlement fund which will pay for legal fees, settlement costs, and compensation to each participating class member, defined as “persons or entities who purchased, acquired, sold, disposed of, owned, held, used, or otherwise transacted in NFTs in a DraftKings account.”
The motion for preliminary approval highlighted the “inherent risks and inevitable delays of continued litigation” and indicated that the settlement was “fair, reasonable, and in the best interest of the Settlement Class.”
The suit was originally filed in 2023 by lead plaintiff Justin Dufoe on behalf of himself and others who purchased or acquired DraftKings NFTs, seeking damages based on the allegations that its NFTs were unregistered securities.
The fantasy sports company pr… creator solana token
