DraftKings’ $10 Million NFT Settlement Gets Initial Approval

DraftKings Inc. and customers who purchased its non-fungible tokens got a federal court’s preliminary approval Friday for a $10 million class settlement of securities fraud claims.

Judge Denise J. Casper acted on the request for approval just two days after the NFT buyers submitted it to the US District Court for the District of Massachusetts.

• Lead plaintiff Justin Dufoe alleged that he and others expected to make a profit from the NFTs, but that he sold some at a loss and many that he still held were worthless
• Dufoe sufficiently pleaded that DraftKings’ NFTs were investment contracts, and thus securities, ...