It’s available at DraftKings I agree To resolve a class action lawsuit that allegedly violated federal securities laws when it sold NFTS on the market, according to a federal court filing Wednesday.
A settlement negotiated by the “arm length” parties confirms that the Company will pay $10 million in cash to the Settlement Fund. This is defined as “persons who are purchasing, selling, selling, discarding, owning, holding, used, or traded on a draft account” who pays legal costs, settlement costs and compensation to members of each participating class.
The claim for preliminary approval highlighted “inherent risks and inevitable delays in continuing litigation,” indicating that the settlement was “fair, reasonable and in the best interests of the settlement class.”
suit Originally filed in 2023 by leading plaintiff Justin Dufour on behalf of himself and others who purchased or acquired the Draft Kings NFT, he sought damages on allegations that the NFT was an unregistered securities.
The fantasy sports company tried to dismiss it before. It was rejected By a judge in the US District Court in Massachusetts, It leads to immediate closure Of the NFT fantasy sports offerings, DraftKings is the ruler.
Reignmakers offered users the opportunity to participate in fantasy sports contests similar to their daily fantasy sports products, filling out a lineup full of PGA Tours, UFC and NFL players using collectable NFTs on the Ethereum Scaling Blockchain Polygon.
The company has raised more than $280 million in total product trading volume. Cryptoslamin the process, it will drive over 10 million transactions in the market.
Around the time of product closure, users were offered the opportunity to abandon the ruler’s NFT in cash or to move into a self-supported wallet. According to the page Dedicated to the ruler On the DraftKings website, players who accepted cash payments for the game’s works burned the NFT if they were not moved to their independent wallet by October 31, 2024.
“In line with our innovative spirit, we challenged the world of NFT-based sports with our rulers and achieved a lot in such a short period,” the DK team wrote on the page.
The final confirmation hearing for the settlement is expected to take place later this year.
DraftKings Inc. Stock (dkng) Trades on NASDAQ Exchange, increasing by 1.1% over the last 24 hours, up by 19% or more years.
By James Rubin
