DraftKings has agreed a $10m settlement in a lawsuit over allegations that the company sold unregistered securities through its NFT marketplace, according to court filings.
Lead plaintiff Justin Dufoe filed the motion for preliminary approval of the settlement yesterday (26 February), bringing a potential end to litigation that has been ongoing for nearly a year and a half.
The settlement would benefit individuals who purchased, acquired, sold, disposed of, owned, held, used, or otherwise transacted in NFTs through DraftKings between 11 August 2021 and the date of final judgment.
The lawsuit, originally filed in March 2023, alleged DraftKings sold NFTs as unregistered securities and operated its DK Marketplace as an unregistered securities exchange in violation of federal and Massachusetts securities laws.
The complaint described how DraftKings received all revenue from initial NFT…
