Dozens of federal lawsuits have been filed against DraftKings, Inc. and FanDuel, Inc. since the insider trading scandal made news in September 2015. By way of a substantial amendment to their complaint, the plaintiffs in a Florida action have added numerous additional defendants.
This putative class action, known as Gomez v. FanDuel, Inc. et al, was filed in the Southern District Court of Florida on October 15, 2015. The suit alleges state law negligence claims against DraftKings and FanDuel — the two industry leaders in daily fantasy sports (DFS) betting — in addition to claims for breach of contract, deceptive trade practices, and civil violations of the Racketeering Influenced and Corrupt Organizations Act.
The amended complaint, filed on November 21, 2015, adds as defendants the bulk of the companies tied to the operations of DraftKings and FanDuel.
The amendment adds several professional sports leagues to the mix—the NHL, NBA, and MLB are now defendants in Gomez. The plaintiffs claim these leagues helped DraftKings and FanDuel to grow despite the alleged illegality of their DFS business operations. Furthermore, the amendment also adds particular financial institutions and credit card companies, which are alleged to have invested in or worked with the DFS defendants, profiting from the DFS activity.