DraftKings May be Off the Hook With Class Action Clause

Written by:
Aaron Goldstein
Published on:
Mar/09/2015
DraftKings May be Off the Hook With Class Action Clause

As reported on the Gambling911.com website and elsewhere, one of the world’s largest daily fantasy websites DraftKings is now the subject of a class action lawsuit claiming false advertising. But the Boston-based company may have an ace up their sleeve according to the legal firm JD Supra.

DraftKings is now on the clock to respond to these allegations – but they may have an ace up their sleeve. Before registering for a DraftKings's account, users must agree to be bound by the site's Terms of Use, which include a mandatory arbitration clause that contains a class action waiver. If the arbitration agreement is found to be legally binding and enforceable, users would be compelled to pursue their claims individually at arbitration, driving a spade through the heart of the class action. It will now be up to the court to determine whether Plaintiff's lawsuit is a bust or if DraftKings will be forced to ante up.

The individual(s) who first filed the suit claim DraftKings misrepresented a bonus offer widely advertised on its own site and across the Net as well as in TV ads.

The case was first filed in the state of Florida.

- Aaron Goldstein, Gambling911.com

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