DraftKings, Users Agree to $10 Million Settlement in NFT Lawsuit

DraftKings Inc. agreed to pay a group of customers $10 million to settle a lawsuit alleging the sportsbook violated state and federal securities laws when selling non-fungible tokens.

The proposed settlement funds would be allocated to people who purchased, held, or sold DraftKings NFTs from Aug. 11, 2021 until judgment is entered, according to a brief from customers in support of its approval.

“The Settlement is the product of vigorous litigation and serious, arm’s-length negotiation,” the customers said, encouraging the court to “find the Settlement is fair, reasonable, and adequate.”

NFT owners brought a lawsuit against DraftKings in 2023 alleging ...