Daily fantasy sports’ week from hell got a little more sulphuric on Thursday after both DraftKings and FanDuel were hit with a class action lawsuit over the so-called ‘insider trading’ scandal.
The suit, filed by Kentucky resident Adam Johnson in US District Court for the Southern District of New York, seeks unspecified damages to be determined by a jury for (deep breath) negligence, fraud and misrepresentation, civil conspiracy, unjust enrichment, and violations of the Kentucky Consumer Protection Act, New York Deceptive Act and New York False Advertising Law.
Johnson, who previously deposited “at least $100” on DraftKings, says he filed his suit on behalf of all US residents “who deposited money into a DraftKings account before Oct. 6, 2015 and competed in any contest where other entries were made by employees from DraftKings, FanDuel or any other DFS site.”
The complaint (read it here courtesy of LegalSportsReport) claims the sites’ “material misrepresentations and omissions fraudulently induced” Johnson and other players “to give Defendants money, which ultimately went to Defendants and their employees through fees and contest prizes.”