DraftKings Must Face Suit Claiming Its NFTs Are Securities (1)

DraftKings Inc. and its leaders failed to convince a federal court to dismiss a proposed class action alleging that it violated federal securities laws by not properly registering its non-fungible tokens.

Plaintiff Justin Dufoe bought and sold NFTs in the DraftKings Marketplace from February 2022 to February 2023. In his original complaint, Dufoe said that he and others in his proposed class expected to make a profit off of the NFTs, but he sold some at a loss and many that he still held were worthless. Dufoe alleged DraftKings violated securities laws when it sold the NFTs and should give ...