Frequently Asked Questions
BACKGROUND INFORMATION
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Why is there a notice?
The notice was published because settlement class members have a right to know about a proposed settlement of a class action lawsuit, and about their options, before a court decides whether to issue a final approval of the settlement.
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What is this lawsuit about?
Plaintiffs alleged that DraftKings operates an illegal online daily fantasy sports website that has caused damages to family members and next-of-kin of DraftKings users who lost money in DraftKings DFS contests. DraftKings denies these allegations entirely, and this settlement is in no way an admission of any wrongdoing on the part of DraftKings.
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Why is this a class action lawsuit?
In a class action, one or more people called class representatives sue on behalf of people who have similar claims. All of these people form a class and are also class members, including the class representatives. One court resolves the issues for all class members. U.S. District Judge George A. O’Toole, Jr. is in charge of this class action.
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Why is there a settlement?
The Court did not decide in favor of Plaintiffs or Defendant. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will receive a benefit. The Class Representative Plaintiffs and Class Counsel think the settlement is best for the Family Member Settlement Class.
WHO IS IN THE SETTLEMENT
To see if you are bound by the settlement, you must first determine if you are a Family Member Settlement Class Member.-
How do I know if I am part of the settlement?
- You may be a Family Member Settlement Class Member if you: (i) had a family member or next-of-kin who is or was a DFS Participant; (ii) are a member of one of the family member settlement classes adopted by the Court in its Order Granting Provisional Certification of Family Member Settlement Class and Preliminary Approval of Family Member Class Action Settlement Agreement in any of the Settlement Jurisdictions; and (iii) are authorized by the laws of the Settlement Jurisdictions to bring claims on behalf of such family members or next-of-kin who is or was a DFS Participant.
- The Family Member Settlement Class under the Settlement Agreement includes the District of Columbia Family Member Settlement Class, the Georgia Family Member Settlement Class, the Illinois Family Member Settlement Class, the Indiana Family Member Settlement Class, the Kentucky Family Member Settlement Class, the Massachusetts Family Member Settlement Class, the New Jersey Family Member Settlement Class, the New Mexico Family Member Settlement Class, the Ohio Family Member Settlement Class, the South Carolina Family Member Settlement Class, the South Dakota Family Member Settlement Class, and the Tennessee Family Member Settlement Class. Excluded from the class are: (a) all persons who are employees, directors, officers, or agents of DraftKings; (b) government entities; (c) the Court, the Court’s immediate family, and Court staff; and (d) the attorneys representing the parties in the case.
- o “District of Columbia Family Member Settlement Class” means all persons in the District of Columbia who are authorized by District of Columbia law, including D.C. CODE ANN. § 16-1702 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Georgia Family Member Settlement Class” means all persons in the State of Georgia who are authorized by Georgia state law, including OFFICIAL CODE. GA. ANN. § 13-8-3 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Illinois Family Member Settlement Class” means all persons in the State of Illinois who are authorized by Illinois state law, including 720 ILL. COMP. STAT. ANN. 5/28-8 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Indiana Family Member Settlement Class” means all persons in the State of Indiana who are authorized by Indiana state law, including IND. CODE ANN. § 34-16-1-4 and/or related statutes, to recover for claims brought on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Kentucky Family Member Settlement Class” means all persons in the State of Kentucky who are authorized by Kentucky state law, including KY. REV. STAT. § 372.010 to § 372.040 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Massachusetts Family Member Settlement Class” means all persons in the State of Massachusetts who are authorized by Massachusetts state law, including MASS. GEN. LAWS ANN. CH. 137, § 1 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.” “New Jersey Family Member Settlement Class” means all persons in the State of New Jersey who are authorized by New Jersey state law, including N.J. STAT. ANN. § 2A:40-6 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “New Mexico Family Member Settlement Class” means all persons in the State of New Mexico who are authorized by New Mexico state law, including NEW MEXICO STAT. ANN. § 44-5-l to § 44-5-3 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Ohio Family Member Settlement Class” means all persons in the State of Ohio who are authorized by Ohio state law, including OHIO REV. CODE ANN. § 3763.04 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “South Carolina Family Member Settlement Class” means all persons in the State of South Carolina who are authorized by South Carolina state law, including S.C. CODE ANN. § 32-1-10 to § 32-1-20 and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “South Dakota Family Member Settlement Class” means all persons in the State of South Dakota who are authorized by South Dakota state law, including S.D. CODIFIED LAWS §§ 21-6-1, 21 6 --2, and/or related statutes, to recover for claims brought on behalf of a family member or next-of-kin who is or was a DFS Participant.
- o “Tennessee Family Member Settlement Class” means all persons in the State of Tennessee who are authorized by Tennessee state law, including TENN. CODE ANN. § 28-3-106, § 29-19-l04 to § 29 19-l05, and/or related statutes, to bring claims on behalf of a family member or next-of-kin who is or was a DFS Participant.
THE SETTLEMENT BENEFITS — WHAT YOU GET
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What can I get from the settlement?
Under the settlement, DraftKings will adopt and maintain a process for allowing individuals who are authorized by statute in the Settlement Jurisdiction of their residence to request that any family member or next-of-kin who participated in a DraftKings DFS contest, deposited money into a DraftKings DFS account, and lost money in a DraftKings DFS contest be excluded from DraftKings’ site or request the setting of deposit or loss limits for that DFS contestant. The process for honoring such individual requests shall be published on DraftKings’ Responsible Gaming page on its website.
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What other settlement benefits are there?
Under the settlement, DraftKings agrees to make a payment in the total amount of $325,000 to the Cambridge Health Alliance Division on Addiction for the support, research, training, or education with regards to responsible gaming
WHAT HAPPENS IF THE SETTLEMENT IS APPROVED?
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What happens if the settlement is approved?
If the settlement is approved by the Court and becomes final, the settlement will be consummated and the case will end; DraftKings will provide the benefits discussed above; and you can’t sue, continue to sue, or be part of any other lawsuit against DraftKings about the legal issues in this case. It also means that all of the Court’s orders will apply to you and legally bind you. You will agree to release all claims against DraftKings related to the legal issues in this case. The full release is available in the Settlement Agreement.
If the settlement is not approved by the Court or does not become final for some other reason, the litigation will continue.
THE LAWYERS REPRESENTING THE CLASS
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Do I have a lawyer in this case?
The Court has appointed the law firm of Heninger, Garrison & Davis, LLC to represent all Family Member Settlement Class Members. The law firm is called Class Counsel. You will not be charged for the lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.
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How will the lawyers be paid?
Class Counsel will ask the Court to award them attorneys’ fees, costs, and expenses up to $140,000.00 and service awards of $1,250.00 for each of the Class Representative Plaintiffs. The Court may award less than these amounts. DraftKings has agreed not to oppose these attorneys’ fees, costs, and expenses and service awards and will separately pay the amounts that the Court awards, provided that such requests do not exceed $140,000.00 and $1,250.00, respectively. These amounts will not be paid by Family Member Settlement Class Members and will not reduce the benefits available to Family Member Settlement Class Members.
OBJECTING TO THE SETTLEMENT
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How do I tell the Court that I don’t like the settlement?
If you are a Family Member Settlement Class Member, you can tell the Court that you object to the settlement and think the Court should not approve it. The Court will consider your views. However, if the Court rejects your objection, you will be bound by the terms of the settlement.
To object, you must mail a written objection to each of the following addresses postmarked no later than May 4, 2022:
COURT CLASS COUNSEL DEFENSE COUNSEL Clerk of the Court
John Joseph Moakley U.S. Courthouse
1 Courthouse Way
Boston, MA 02210HENINGER GARRISON DAVIS LLC
Taylor Bartlett
2224 1st Avenue N.
Birmingham, AL 35203KING & SPALDING LLP
Damien J. Marshall
Leigh Nathanson
1185 Avenue of the Americas, 34th Floor
New York, NY 10036To be valid, your written objection must state: (1) your full name, address, telephone number, and e-mail address; (2) the case name and case number; (3) information identifying you as a Family Member Settlement Class Member; (4) a written statement of the specific legal and factual basis for your objection, including whether your objection applies only to you, a specific subset of the Family Member Settlement Class, or the entire Family Member Settlement Class; (5) a description of any and all evidence you may offer at the Fairness Hearing, including but not limited to the names, addresses, and expected testimony of any witnesses and all exhibits intended to be introduced at the hearing; (6) the identity of all counsel representing you; (7) a statement whether you and/or your counsel will appear at the Fairness Hearing; (8) your signature and the signature of your duly authorized attorney or other duly authorized representative (along with documentation setting forth such representation); and (9) a list, by case name, court, and docket number, of all other cases in which you and/or your counsel has filed an objection to any proposed class action settlement within the last five (5) years. If you file an objection, Class Counsel or counsel for DraftKings may take your deposition and seek evidence from you that is relevant to your objection.
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What is the difference between objecting to the settlement and excluding myself from the settlement?
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THE FAIRNESS HEARING
The Court will hold a Fairness Hearing to decide whether to finally approve the settlement. You may attend and you may speak, but you don’t have to.-
When and where will the Court decide whether to approve the settlement?
The Court will hold a Fairness Hearing at the United States District Court, District of Massachusetts, Boston Division, in the Honorable George A. O’Toole, Jr.’s courtroom, John Joseph Moakley U.S. Courthouse, 1 Courthouse Way, Courtroom 22, Boston, Massachusetts, 02210 on June 8, 2022, at 2:00 p.m. At the hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will also consider how much DraftKings should pay to Class Counsel and the Class Representative Plaintiffs. After the hearing, the Court will decide whether to approve the settlement. We do not know how long it will take the Court to make a decision.
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Do I have to come to the hearing?
No. Class Counsel will answer questions Judge O’Toole may have. But you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. As long as you send your written objection on time, the Court will consider it. However, if you file an objection but choose not to appear at the Fairness Hearing, you may waive your right to appeal from any Court order concerning your objection. You may also pay your own lawyer to attend the hearing, but it is not necessary.
IF YOU DO NOTHING
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What happens if I do nothing at all?
If you do nothing at all, you won’t be able to start, continue, or be a part of any other lawsuit against DraftKings based on the legal issues in this case, ever again.