IN RE: DAILY FANTASY SPORTS LITIGATION

Case No. 16-md-2677 (GAO)

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MASSACHUSETTS

Frequently Asked Questions

  1. BASIC INFORMATION

  2. Why did I receive the notice?

    You received a Notice because DraftKings Inc. (“DraftKings”) records indicate that you made a first-time deposit into a DraftKings Daily Fantasy Sports account prior to January 1, 2018, and have an open account with DraftKings, or

    You received a Notice because DraftKings Inc. (“DraftKings”) records indicate that you made a first-time deposit into a DraftKings Daily Fantasy Sports account prior to January 1, 2018, and have a closed account with DraftKings.

    We are sending you the notice because you have a right to know about a proposed settlement of a class action lawsuit, and about your options, before the Court decides whether to issue a final approval of the settlement. If the Court approves the settlement, DraftKings will distribute the settlement benefits after all appeals are resolved.

    This notice explains the lawsuit, the settlement, your legal rights, and what benefits are available, who is eligible for them, and how to get them.

    The Court in charge of the case is the United States District Court for the District of Massachusetts, and the case is known as captioned In re: Daily Fantasy Sports Litigation., MDL Case No. 2677. The people who sued are called Plaintiffs and the company they sued, DraftKings, which does business as the entity known as DraftKings, is called the Defendant.

  3. What is this lawsuit about?

    Plaintiffs allege that DraftKings falsely advertised its product as a fair, 100% legal, easy to win game of skill that players could win if they practiced, played, studied, or worked on, and falsely advertised that players first deposit of up to $600 would be immediately matched by DraftKings. DraftKings denies these allegations entirely, and this settlement is in no way an admission of any wrongdoing on the part of DraftKings.

  4. 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 Class Members. One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. U.S. District Judge George A. O’Toole, Jr. is in charge of this class action.

  5. 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 quickly receive a benefit. The Class Representatives and Class Counsel think the settlement is best for the Class.

  6. WHO IS IN THE SETTLEMENT

    To see if you will receive any benefits from the settlement, you must first determine if you are a Settlement Class Member.

  7. How do I know if I am part of the settlement?

    If you receive the notice, you are in the Settlement Class unless you exclude yourself from the Settlement Class by providing written notice in accordance with the procedures set forth in the Notice.

  8. THE SETTLEMENT BENEFITS —WHAT YOU GET

  9. What can I get from the settlement?

    All Settlement Class Members with an open account with DraftKings who do not opt out under the procedures set forth in this Notice and who provide a timely, accurate, complete and duly executed Claim Form and Declaration shall be entitled to make a claim for DK Dollars which, if validly made, will be deposited directly into their account in an amount (not to exceed an agreed limit) that will be determined by, amongst other things, the number of timely, accurate, complete and duly executed Claim Forms and Declarations that are made against the portion of the settlement fund allocated to their level, as determined by the amount of their initial deposit. Amounts will be equally distributed to valid claimants in each level up to the maximum applicable to the relevant level.

    All Settlement Class Members who have a closed account with DraftKings who do not opt under the procedures set forth in this Notice, and who provide a timely, accurate, complete and duly executed Claim Form and Declaration shall be entitled to make a claim for U.S. Dollars in an amount (not to exceed an agreed limit) that will be determined by, amongst other things, the number of timely, accurate, complete and duly executed Claim Forms and Declarations that are made against the portion of the settlement fund allocated to their level, as determined by the amount of their initial deposit. Amounts will be equally distributed to valid claimants in each level up to the maximum applicable to the relevant level.

  10. HOW CAN I GET MY BENEFIT—SUBMITTING A VALID CLAIM FORM AND DECLARATION

  11. How can I get a benefit?

    In order to receive the benefit for which you are eligible, you must fully and accurately fill out, duly execute, and timely submit the Claim Form and Declaration. You can also download a Claim Form and Declaration, here. Read the instructions carefully, fill out and sign the Claim Form and Declaration, and mail the completed Claim Form and Declaration to DraftKings Settlement Claims Administrator / DraftKings Settlement Claim Forms 1650 Arch Street, Suite 2210, Philadelphia, PA 19103 so that it is postmarked no later than August 19, 2021.

  12. THE LAWYERS REPRESENTING THE CLASS

  13. What am I giving up to get a benefit and stay in the Settlement Class?

    Unless you exclude yourself, you are staying in the Settlement Class, and that means that 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. If you stay in the Settlement Class, you will agree to release all claims regarding any first-time deposit into a DraftKings Daily Fantasy Sports account prior to January 1, 2018, including, but not limited to, claims for money damages or monetary relief.

    The settlement and release will extend to DraftKings Inc., a Delaware corporation; the Payment Processor Defendants as defined in the Complaint: Paysafecard.com USA Inc.; Vantiv, Inc. only as to claims involving DraftKings; the Non-Defendant Banks as defined in the Complaint: JPMorgan Chase & Co.; Capital One Financial Corporation only as to claims involving DraftKings; the Non-Defendant Facilitators as defined in the Complaint: Visa Inc.; Mastercard Incorporated; American Express Credit Corporation only as to claims involving DraftKings; the Non Defendant Enterprise DraftKings Investors as defined in the Complaint: 21st Century Fox; Atlas Ventures Associates III, Inc.; BDS Capital Management LLC; Mail.ru Group, formerly known as DST Global, also known as Digital Sky Technologies; Fox Sports Interactive Media LLC; GGV Capital; Jason Robins; Hub Angels Management LLC; Jordan Mendell; Kraft Group; Legends Hospitality LLC; MSG Sports & Entertainment, LLC; Major League Baseball Ventures; Major League Soccer LLC; M7 Tech Partners LLC; NHL Enterprises, Inc.; NHL Enterprises, L.P.; Redpoint Ventures LLC; The Raine Group LLC; and Wellington Management Company LLC. only as to claims involving DraftKings; and the past and present direct and indirect parents, subsidiaries, and affiliated Persons of all of the foregoing persons and entities; the officers, directors, employees, partners, shareholders, agents, attorneys, and insurers of all of the foregoing persons and entities; and the predecessors, successors, assigns, and legal representatives of all of the foregoing persons and entities only as to claims involving DraftKings. If you do not exclude yourself from the Settlement Class, you will be deemed to have entered into this settlement and to have settled and released, among other things, the above described claims. The full release is available in the Settlement Agreement.

    If the settlement is approved by the Court and becomes final, the settlement will be consummated, and the case will end. If the settlement is not approved by the Court or does not become final for some other reason, the litigation will continue.

  14. EXCLUDING YOURSELF FROM THE SETTLEMENT

    If you don’t want a benefit from this settlement or want to keep the right to sue or continue to sue DraftKings on your own about the legal issues in this case, then you must take steps to exclude yourself from (or “opt out” of) the Settlement Class.

  15. How do I get out of the settlement?

    To validly exclude yourself from the Settlement Class, you must send a letter by mail that is personally signed by you and includes: (1) a specific statement that you request exclusion from the Settlement Class in In re: Daily Fantasy Sports Litigation., MDL Case No. 2677; and (2) your full name, address, and telephone number. You must mail your exclusion request postmarked no later than August 19, 2021, to:

    DraftKings Settlement Claims Administrator
    DraftKings Settlement Exclusions
    PO Box 58220
    Philadelphia, PA 19102

    You cannot exclude yourself by phone or e-mail. If you ask to be excluded, you will not get any settlement benefit and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit. You may be able to sue (or continue to sue) DraftKings.

  16. If I don’t exclude myself, can I sue DraftKings for the same thing later?

    No. Unless you exclude yourself, you give up the right to sue DraftKings for the claims that this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that lawsuit immediately. You must exclude yourself from this Settlement Class to continue your own lawsuit.

  17. If I exclude myself, can I get any of the benefits offered in this settlement?

    No. If you exclude yourself, do not send in a Claim Form and Declaration to ask for any benefit.

  18. THE LAWYERS REPRESENTING YOU

  19. Do I have a lawyer in this case?

    The Court has appointed the law firms Todd & Weld LLP; Jones Ward PLC; Napoli Shkolnik PLLC; Kantrowitz, Goldhamer & Graifman, P.C.; Morgan & Morgan Complex Litigation Group; Law Offices of Jennifer Duffy, APC; The Gori Law Firm, P.C.; Heninger, Garrison & Davis, LLC; Hannon Law Firm, LLC; Lockridge Grindal Nauen, P.L.L.P.; Cuneo Gilbert & Laduca, LLP; Sherman, Silverstein, Kohl, Rose & Podolsky, P.A.; and Law Office of Richard S. Cornfeld to represent you and all Settlement Class Members. The law firms are called “Class Counsel.” You will not be charged for these lawyers. If you want to be represented by your own lawyer, you may hire one at your own expense.

  20. How will the lawyers be paid?

    Class Counsel will ask the Court to award them attorneys’ fees up to $1,900,000, costs of up to $100,000, and incentive payments of $1,250.00 for the each of the Class Representatives. The Court may award less than these amounts. DraftKings has agreed not to oppose these attorneys’ fees, costs, and incentive payments and will separately pay the amounts that the Court awards, not to exceed the above amounts. These amounts will not be paid by Settlement Class Members and will not reduce the benefits available to Settlement Class Members.

  21. OBJECTING TO THE SETTLEMENT

  22. How do I tell the Court that I don’t like the settlement?

    If you are a 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 August 19, 2021:

    Court:
    Clerk of the Court
    John Joseph Moakley U.S. Courthouse
    1 Courthouse Way
    Boston, MA 02210

    Counsel:
    DraftKings Settlement
    Comments/Objections
    1650 Arch Street, Suite 2210
    Philadelphia, PA 19103

    Your written objection must include: (1) your full name, address and telephone number; (2) your specific objection and a statement of its basis; (3) documentary proof that you are a member of the Settlement Class; and (4) if you want to speak at the Fairness Hearing at which the Court will consider whether to finally approve the proposed settlement, a Notice of Intention to Appear (see #18 below) with any papers and briefs you intend to discuss at the hearing. In addition, you must state whether you or your separate counsel, if any, has objected to any class action settlement submitted to any court in the United States in the last five years; and if you or your separate counsel has so objected, you must provide a detailed list of the objections. 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.

  23. What is the difference between objecting to the settlement and excluding myself from the settlement?

    Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

  24. 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.

  25. 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 9, Boston, Massachusetts, 02210 on October 6, 2021, at 11:00 a.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 Representatives. 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.

  26. 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.

  27. May I speak at the hearing?

    If you do not exclude yourself from the settlement, you may ask the Court for permission to speak at the Fairness Hearing. To do so, you must send a letter saying that it is your Notice of Intention to Appear In re: Daily Fantasy Sports Litigation. The letter must include your full name, address, telephone number, and signature and be mailed to the following addresses postmarked no later than August 19, 2021:

    Court:
    Clerk of the Court
    John Joseph Moakley U.S. Courthouse
    1 Courthouse Way
    Boston, MA 02210

    Counsel:
    DraftKings Settlement
    Notice of Intention to Appear
    1650 Arch Street, Suite 2210
    Philadelphia, PA 19103

    You cannot speak at the Fairness Hearing if you exclude yourself from the Settlement Class.

  28. THE FAIRNESS HEARING

  29. What happens if I do nothing at all?

    If you do nothing at all, you’ll receive none of the benefits offered in this settlement. But, unless you exclude yourself, 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.

  30. GETTING MORE INFORMATION

  31. Are there more details about the settlement?

    The notice summarizes the proposed settlement. More details are in the Settlement Agreement, which can be reviewed at here.

  32. How do I get more information?

    You can get more information about this litigation and the settlement on this website. If you have questions about your legal rights or entitlements, you may contact Class Counsel at Christopher Weld, One Federal Street, Boston, MA 02109. Telephone: (617) 720-2626. Email: cweld@toddweld.com. If you have questions about the administration of your claim, you may contact DraftKings by calling 1-855-317-1118 or sending an e-mail to info@DFS-Settlement.com. Please do not contact DraftKings through any other e-mail address, website or telephone number about the settlement, as regular DraftKings Customer Service representatives will be unable to assist you with this matter.