Money Class action suit filed against draftkings and Fanduel

Eleazar · 10-09-2015, 01:26 PM

Class action lawsuit filed against DraftKings and FanDuel

A class action lawsuit was filed in federal court in Manhattan on Thursday accusing DraftKings and FanDuel of negligence, fraud and false advertising.

The case was brought by Adam Johnson of Kentucky, who says he deposited $100 into a DraftKings account.

The suit claims that daily fantasy games put forth by the two companies are misrepresented as fair. That case is made mainly through the recently revealed policies of the two companies that allowed employees to enter contests on the other's site for cash prizes, along with the rest of the population.

"DraftKings performs analytics to determine winning strategies, return on investment of certain strategies and even how lineups on FanDuel would do if they were entered into DraftKings contests," the suit alleges.

With these strategies potentially available to some employees, those employees could have a potential advantage by playing on a competitor's site.

FanDuel spokesperson Justine Sacco told ESPN.com earlier in the week that DraftKings employees have won 0.3 percent of the money FanDuel has awarded in its entire history. With a ballpark figure of $2 billion awarded so far, that's around $6 million. It is not known how much those DraftKings employees spent on entry fees.

DraftKings co-founder Paul Liberman said at a conference last month at Babson College that some of the company's employees made more off other fantasy sites than their salaries at DraftKings.

Representatives from both DraftKings and FanDuel said their companies would have no comment on the litigation.

The suit names DraftKings and FanDuel as defendants. The suggested class is specified as only people who put money in a DraftKings account before Oct. 6 and competed in a contest where employees of other daily fantasy companies participated.

Both sites said this week they would permanently ban the practice of employees competing on the competitor's site, or any other daily fantasy site.

This came after a DraftKings employee's posting of player roster percentages and his subsequent $350,000 take in a FanDuel contest raised questions about inside information.

One prevailing thought is that if a person had access to how many people selected certain players on rosters before those rosters were locked, they would have an edge. This is because top prizes are often won by individuals with a player who appears on fewer rosters but comes through with a big game.

DraftKings said its own investigation of that employee, Ethan Haskell, found that Haskell didn't have access to advantageous information before he entered his lineup on FanDuel that week.

While there is concern from the public, thus far neither company has said it has found any employee who had access to information that specifically provided him or her an advantage in a contest.

Both FanDuel and DraftKings also announced this week the hiring of third-party consultants to look into potential impropriety and review practices within the companies.

Eleazar · 10-09-2015, 01:27 PM

Forgot link - http://espn.go.com/chalk/story/_/id/...se-advertising

**ptlyon** · 10-09-2015, 01:29 PM

Timing is everything

Bewbies · 10-09-2015, 01:30 PM

God bless the attorney with no shame.

Guy deposits $100 and sues. Wastes years of his life to get $10, attorney makes $100,000,000.

**TimBone** · 10-09-2015, 03:11 PM

Ethan Haskell has to be related to Eddie.

**Rain Man** · 10-09-2015, 03:21 PM

Quote:

Originally Posted by Bewbies

God bless the attorney with no shame.

Guy deposits $100 and sues. Wastes years of his life to get $10, attorney makes $100,000,000.

Yeah, we know how this story ends. The victims of the fraud will get a $2 coupon as a settlement so they can get ripped off again, and the lawyers will collect their fees at a full hourly rate with unmonitored hours.

BWillie · 10-09-2015, 03:24 PM

Lol what a joke.

Otter · 10-09-2015, 03:34 PM

Can I sue the Taj Mahal? I have this sneaky suspicion that they stack the odds against me when I'm gambling.

WhitiE · 10-09-2015, 05:54 PM

Quote:

Originally Posted by Otter

Can I sue the Taj Mahal? I have this sneaky suspicion that they stack the odds against me when I'm gambling.

Wrong Indians bro

KCTitus · 10-09-2015, 06:15 PM

'How to **** up a good thing', chapter 1.

geez...no one employed by these companies should be allowed to be eligible to compete. Period. Dont like it...quit, then win.

Miles · 10-10-2015, 12:52 AM

Quote:

Originally Posted by Rain Man

Yeah, we know how this story ends. The victims of the fraud will get a $2 coupon as a settlement so they can get ripped off again, and the lawyers will collect their fees at a full hourly rate with unmonitored hours.

General saying is usually the only real winners in a class action recovery is the firm representing the class. However, I somehow managed to get around $200 back from participating in a class action suit which was amusingly about being overcharged for bar prep courses.

MMXcalibur · 10-10-2015, 01:17 AM

What turned everyone against these companies is their relentless ads.
It's really quite amazing to see how advertising can go wrong.

**Mr. Flopnuts** · 10-10-2015, 02:18 AM

It'll reduce the player pool for a week, 2 max. People are hooked on this shit and want to be the next guy in the commercials. The guy who filed the suit will get like 25k, players will get a free entry to a sunday millions 25 dollar game, and the attorney will get PAID. Unmitigated paid. As has already been posted. And this will all be finalized in 2019. There's my prediction.

Simply Red · 10-10-2015, 05:50 AM

Quote:

Originally Posted by TimBone

Ethan Haskell has to be related to Eddie.

chiefzilla1501 · 10-10-2015, 05:51 AM

Will probably win. How can you run a business like this and have no policy against using insider information for financial gain?

10-09-2015, 01:26 PM
Eleazar Beyond the Rapids Join Date: May 2003 Location: Langley, VA Casino cash: $-370000	Class action suit filed against draftkings and Fanduel Class action lawsuit filed against DraftKings and FanDuel A class action lawsuit was filed in federal court in Manhattan on Thursday accusing DraftKings and FanDuel of negligence, fraud and false advertising. The case was brought by Adam Johnson of Kentucky, who says he deposited $100 into a DraftKings account. The suit claims that daily fantasy games put forth by the two companies are misrepresented as fair. That case is made mainly through the recently revealed policies of the two companies that allowed employees to enter contests on the other's site for cash prizes, along with the rest of the population. "DraftKings performs analytics to determine winning strategies, return on investment of certain strategies and even how lineups on FanDuel would do if they were entered into DraftKings contests," the suit alleges. With these strategies potentially available to some employees, those employees could have a potential advantage by playing on a competitor's site. FanDuel spokesperson Justine Sacco told ESPN.com earlier in the week that DraftKings employees have won 0.3 percent of the money FanDuel has awarded in its entire history. With a ballpark figure of $2 billion awarded so far, that's around $6 million. It is not known how much those DraftKings employees spent on entry fees. DraftKings co-founder Paul Liberman said at a conference last month at Babson College that some of the company's employees made more off other fantasy sites than their salaries at DraftKings. Representatives from both DraftKings and FanDuel said their companies would have no comment on the litigation. The suit names DraftKings and FanDuel as defendants. The suggested class is specified as only people who put money in a DraftKings account before Oct. 6 and competed in a contest where employees of other daily fantasy companies participated. Both sites said this week they would permanently ban the practice of employees competing on the competitor's site, or any other daily fantasy site. This came after a DraftKings employee's posting of player roster percentages and his subsequent $350,000 take in a FanDuel contest raised questions about inside information. One prevailing thought is that if a person had access to how many people selected certain players on rosters before those rosters were locked, they would have an edge. This is because top prizes are often won by individuals with a player who appears on fewer rosters but comes through with a big game. DraftKings said its own investigation of that employee, Ethan Haskell, found that Haskell didn't have access to advantageous information before he entered his lineup on FanDuel that week. While there is concern from the public, thus far neither company has said it has found any employee who had access to information that specifically provided him or her an advantage in a contest. Both FanDuel and DraftKings also announced this week the hiring of third-party consultants to look into potential impropriety and review practices within the companies.
Posts: 80,659

10-09-2015, 01:27 PM	#2
Eleazar Beyond the Rapids Join Date: May 2003 Location: Langley, VA Casino cash: $-370000	Forgot link - http://espn.go.com/chalk/story/_/id/...se-advertising
Posts: 80,659

10-09-2015, 01:29 PM	#3
ptlyon Bono & Grbac wasn't enough Join Date: Oct 2000 Location: Sioux City, IA Casino cash: $9223829	Timing is everything __________________ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Advertise here: $19.99 a month
Posts: 40,915

10-09-2015, 01:30 PM	#4
Bewbies Ith Fuhtbawl Time Join Date: Apr 2010 Casino cash: $9999900	God bless the attorney with no shame. Guy deposits $100 and sues. Wastes years of his life to get $10, attorney makes $100,000,000.
Posts: 10,085

10-09-2015, 03:11 PM	#5
TimBone Mostly Ignored Join Date: Jul 2013 Casino cash: $8419985	Ethan Haskell has to be related to Eddie.
Posts: 18,097

10-09-2015, 03:24 PM	#7
BWillie Are you ready to Rumble? Join Date: Apr 2006 Casino cash: $-1478759	Lol what a joke.
Posts: 52,887

10-09-2015, 06:15 PM	#10
KCTitus Archivist Join Date: Aug 2000 Location: The Ethernet Casino cash: $9882732	'How to **** up a good thing', chapter 1. geez...no one employed by these companies should be allowed to be eligible to compete. Period. Dont like it...quit, then win. __________________ Anything you post on this BB can and will be used against you...
Posts: 26,199

10-10-2015, 01:17 AM	#12
MMXcalibur Pessimistically optimistic. Join Date: Jan 2009 Location: Denver, CO Casino cash: $-144914	What turned everyone against these companies is their relentless ads. It's really quite amazing to see how advertising can go wrong.
Posts: 16,747

10-10-2015, 05:51 AM	#15
chiefzilla1501 In Search of a Life Join Date: Aug 2008 Casino cash: $-1775503	Will probably win. How can you run a business like this and have no policy against using insider information for financial gain?
Posts: 51,674