DraftKings NFT $10M Class Action Settlement

If you purchased, acquired, sold, disposed of, owned, held, used, or otherwise transacted in NFTs through a DraftKings account between August 11, 2021, and the date the court enters final approval you may qualify to submit a for this a class action settlement.

DraftKings Inc. has agreed to pay $10 million to settle a class action lawsuit alleging violations of federal and Massachusetts securities laws. The lawsuit claims that DraftKings NFTs were unregistered securities and that DraftKings operated as an unregistered securities exchange and broker.

Who is eligible for a DraftKings payout?

You are a class member if you meet the following criteria:

• You transacted in NFTs through a DraftKings account, including DraftKings Marketplace NFTs.
• Your transactions occurred between August 11, 2021, and the date the court enters final approval for this settlement.

How much will the class action settlement payment be?

The amount each class member receives depends on their recognized loss and the total number of valid claims submitted.

Recognized loss is calculated as follows:

• Add the total amount paid for NFTs purchased directly from DraftKings ("Primary Market Payments") and the total amount paid for NFTs purchased on the secondary market ("Secondary Market Payments").
• Subtract any amounts received from selling NFTs on the secondary market ("Secondary Market Receipts"), amounts received from DraftKings' Marketplace shutdown offer ("Closure Receipts"), and amounts received from DraftKings prize contests ("Prize Receipts").

How to claim a settlement payout

To receive a payment, you must submit a valid claim form. You may file a claim online or download and print the PDF claim form and mail it to the settlement administrator.

Settlement Administrator's mailing address: DraftKings NFT Settlement, c/o A.B. Data, Ltd., P.O. Box 173039, Milwaukee, WI 53217.

Claims must be submitted online or postmarked by July 21, 2025.

What proof or information is required to submit a claim?

• Unique ID and PIN from notice required to submit a claim.
• Last four digits of Social Security Number or Taxpayer Identification Number required on claim form.
• No other supporting documentation is required at this time, however the settlement administrator instructs all claimants to retain records of their NFT ownership and transactions as it may be requested at a later date.

Payment options

Claimants can select from the following

• Digital payment such as PayPal or virtual debit card)
• Paper check

$10 Million DraftKings settlement fund breakout

The $10,000,000 settlement fund includes:

• Settlement administration costs: At least $300,000
• Attorneys' fees: Up to $3,333,333
• Attorneys' expenses: Up to $100,000
• Service award to the Lead Plaintiff: Up to $50,000
• Payments to approved claimants: Remaining settlement funds

Important dates

• Deadline to File a Claim: July 21, 2025
• Fairness Hearing: July 30, 2025, at 3:00 p.m.

When is the DraftKings NFT class action settlement payout date?

The final fairness hearing will take place on July 30, 2025. Claims will be processed and payments to valid claimants will be issued after the court grants final approval to the settlement.

Why did DraftKings agree to this settlement?

DraftKings faced allegations that its NFTs were securities that were not properly registered under federal and Massachusetts securities laws. The lawsuit also alleged DraftKings operated as an unregistered securities exchange and broker. DraftKings denies these allegations but agreed to settle to avoid further expensive litigation and a possible trial.

Sources

1. Official Settlement Website
2. Class Notice