DraftKings settles NFL players union lawsuit
DraftKings has resolved a lawsuit brought by the National Football League Players Association for allegedly failing to pay for using NFL player likenesses, according to a joint filing on Monday in New York federal court.
The NFLPA and DraftKings told the court, opens new tab that they had settled the case in principle and asked for a pause while they finalize their agreement. Spokespeople and attorneys for the parties did not immediately respond to requests for comment and more information.
Boston-based DraftKings partnered with the NFLPA in 2021 to make collectible non-fungible tokens of NFL players to buy and sell in a fantasy sports game. The NFLPA alleged that DraftKings threatened to stop offering the NFTs in 2023, after which the union agreed to restructure their contract.
According to the union’s complaint, DraftKings said the amended contract allows it to end the agreement if a court determines that the NFTs are securities. A federal judge in Boston said that the tokens may be unregistered securities in a separate class-action lawsuit against DraftKings last year.