LATEST INSIGHTS

Fantasy Sports

DraftKings Hires Compliance Firm to Review Company’s Control Policies

DraftKings, Inc. stated on November 24, 2015 that it hired a regulatory risk and compliance firm to review the company’s control policies. DraftKings and its competitor, FanDuel, Inc., are the leading companies in the daily fantasy sports (DFS) betting industry.

In late-September 2015, news broke of an insider trading scandal involving both DraftKings and FanDuel. A DraftKings employee used inside data to win $350,000 on FanDuel’s website. Since then, the two companies have been served with dozens of federal lawsuits, which have alleged claims ranging …

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Fantasy Sports

The DraftKings and FanDuel Litigations: What to Focus On as the Stakes Rise in FL and NY

Since the daily fantasy sports (DFS) insider trading scandal made headlines in late-September 2015, DraftKings, Inc. and FanDuel, Inc., the two DFS industry leaders, have been served with dozens of federal lawsuits.

This past week, some noise was made in the federal putative class action known as Gomez v. FanDuel, Inc. et al. Initially, DraftKings and FanDuel were the only defendants in the case, which was filed in the Southern District Court of Florida in October 2015.

Yet, on November 21, 2015, the Gomez…

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Litigation

Former Yankees Star Derek Jeter Suing Underwear Company

On Friday, November 20, 2015, former New York Yankees star Derek Jeter’ lawsuit against luxury underwear maker RevolutionWear became public. Jeter, a former director and investor in the company, is suing RevolutionWear in Delaware’s Court of Chancery for legal fees related to his service as a director.

Just last year, RevolutionWear released the names of its “celebrity” affiliates, which included Derek Jeter, New York Knicks star Carmelo Anthony, and rapper 50 Cent. Jeter joined the company’s board of directors in 2011, on top of investing …

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Fantasy Sports / MLB / NBA / NFL

Upping the Ante in Fantasy Sports Litigation: NHL, NBA, MLB Added as Defendants in FL Action

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 …

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Concussions / Litigation / NCAA

NCAA Responds to Objections Over Concussion Settlement

On November 16, 2015, the NCAA responded to objections made earlier this month in relation to the proposed $75 million concussion settlement offered by the NCAA to monitor symptoms of concussions in current and former athletes.

A couple of weeks ago, Adrian Arrington — former member of the Eastern Illinois University football program — objected to the proposed NCAA settlement, claiming that it will not help former college athletes that have already incurred out-of-pocket expenses related to diagnosed injuries. Arrington also voiced his concern that …

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Fantasy Sports

Daily Fantasy Sports in Massachusetts: AG Proposes Regulations Rather Than Prohibition

On Thursday November 19, 2015, Massachusetts Attorney General Maura Healey released proposed regulations for daily fantasy sports (DFS). The proposal follows New York Attorney General Eric Schneiderman’s decision to completely ban the two industry leaders— DraftKings and FanDuel — from accepting wagers from New York residents.

Unlike Schneiderman’s decision, which is currently being questioned in New York state courts, Healey proposes increased regulations rather than a complete prohibition.

In a statement, Healey argued that the DFS industry “cries out for transparency and robust consumer protection.” …

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Concussions / NFL

NFL Hit With Another Concussion Lawsuit

On Wednesday November 11, 2015, the son of former professional football player Art DeCarlo brought a wrongful death suit against the National Football League in New York State Supreme Court on behalf of his father’s estate. The son chose to file an individual suit rather than participate in the contested concussion settlement agreement reached between the NFL and former players for more than $765 million. That settlement is still waiting approval on appeal.

According to the complaint, DeCarlo played in the NFL from 1953 to …

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NFL

US Supreme Court Denies “Jock Tax” Review, Cleveland to Refund Millions

Last week, the United States Supreme Court declined to review the Ohio Supreme Court’s decision to strike down Cleveland’s “jock tax.” The Ohio Supreme Court previously agreed to suspend its decision while the city appealed, but now that the U.S. Supreme Court has denied certiorari, the city must begin to refund players millions.

Cleveland is one of eight cities that have implemented a so-called “jock tax,” which is an income tax levied on NFL players visiting the city for a road game. The decision to …

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Fantasy Sports

FanDuel to Cease Operations in New York Until Hearing on Nov. 25

The pace of the game is moving quickly in the dispute between New York Attorney General Eric Schneiderman and daily fantasy sports (“DFS”) industry leaders DraftKings, Inc. and FanDuel, Inc. As for the latest news, FanDuel has elected to suspend its New York operations until the November 25th emergency hearing.

Following a month-long investigation, Schneiderman notified DraftKings and FanDuel on November 10, 2015 of his decision to prohibit the companies from accepting New Yorkers’ DFS wagers. Both companies decided to challenge Schneiderman’s decision by …

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NHL

Former Coyotes Owner Gets Hit With Bankruptcy Damages

On November 12, 2015, U.S. District Judge G. Murray ruled that former Phoenix Coyotes owner Jerry Moyes is liable to the NHL for  attorneys’ fees and other damages that resulted from the team’s bankruptcy back in 2009.

The NHL initiated its action against the former Coyotes owner after he declared Chapter 11 bankruptcy and the NHL purchased the team for $140 million. The suit was brought in 2010 to recover $145.9 in damages, which included more than $112 in operating expenses,  $6.5 million in unpaid …

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