November 13, 2015

Greenberg Gross Files Federal Class Action Against DraftKings, FanDuel for Racketeering

COSTA MESA (November 13, 2015) — Greenberg Gross LLP, in conjunction with Newport Beach law firm Robinson Calcagnie Robinson Shapiro Davis, Inc., has filed a national class action in federal court accusing fantasy sports giants DraftKings, Inc., and FanDuel, Inc., of cheating millions of consumers by running rigged games that gave their own employees a grossly unfair advantage.

With this lawsuit, Greenberg Gross brings its broad and impressive experience in high-stakes business litigation to the legal battle against daily fantasy sports gambling.

The class action complaint, filed in federal court in Santa Ana, charges DraftKings and FanDuel with tricking consumers into playing what was advertised as an honest game of skill but in reality was “an illegal and deceptive gambling enterprise” that was stacked against all but a select few players.

The “game” was rigged because employees of the two companies were allowed “unfettered real time access to material inside information,” enabling them to win big by playing on one another’s sites. Hale v. DraftKings, Inc., 8:15-CV-1879 (Cal. C.D., filed Nov. 12, 2015)

“DraftKings and FanDuel act in concert to create and maintain this illegal gambling enterprise,” the complaint states. “Personnel from both Defendants benefited by using inside information to fleece everyday consumers who reasonably believe they are playing a fair game of skill. It is only because both FanDuel and DraftKings allowed their personnel to secretly play on each other’s sites that the practice could occur and remain hidden.”

The class action complaint charges the two leaders in the multibillion-dollar daily fantasy sports industry with racketeering, conspiracy, fraud, false advertising and violations of consumer protection laws. It asks the court to order the companies to stop their deceptive practices and to pay “full remuneration for every dollar lost by players on either site,” as well as treble damages.

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