Firm Files Fantasy Sports FanDuel & DraftKings Class Action

October 20, 2015 / 5:06 am

FanDuel and DraftKings Class Action Complaint Seeks Return of $5 Million, Alleges Players Were Cheated by “Sharks” Who Used “Sniping Software” to Gain Unfair Advantage

CORAL GABLES (Oct. 19, 2015) – The trial law firms of Colson Hicks Eidson and Lagos & Priovolos have filed a proposed class action lawsuit in U.S. District Court for the Southern District of Florida on behalf of two South Florida men and similarly situated class members against the daily fantasy sports game operators FanDuel Inc. and DraftKings Inc.

The complaint alleges that between February 2012 and October 6, 2015, the defendants engaged in deceptive and unfair trade practices by allowing an elite group of players to use special computer software to gain an edge over most of the other daily fantasy sports competitors who patronized the firms’ websites.

The name plaintiffs seeking to represent the proposed class are Antonio Gomez, a FanDuel player, and Ricardo Alejandro Garcia, who competed through DraftKings. Both reside in Miami-Dade County. The suit alleges both were outmaneuvered by elite players who used “robots,” “spiders,” “scrapers” and “sniping software” to gain a competitive advantage. In effect, they were allowed by the companies to engage in a practice called scripting, where high volume players used automated processes to expedite multiple entries in a single contest.

“While any player may get lucky on the back of a handful of entries into defendants’ DraftKings’ and FanDuel’s games, over time nearly all of the prize money flows to a tiny elite equipped with elaborate statistical modeling and automated tools that can manage hundreds of entries at once and identify the weakest opponents,” the FanDuel and DraftKings class action lawsuit alleges.

To play on the fantasy sports sites, competitors open accounts with the companies which host the competition among individual users. Players pay entry fees to build virtual rosters of actual athletes on sports teams. The participants can win prizes based on the players’ performances in real games.

But the suit alleges that while the amount of prize money for each game was set in advance, the number of users who entered any given game was unknown.

According to the lawsuit, an “overlay” would occur when the amount of a prize exceeded the amount of money received by the companies from the entry fees. To cure the problem, the companies allowed “Apex predators” to “flood the games, because money received from increased entries paid by the predators provides coverage to DraftKings and FanDuel for the overlay.”

Besides the companies, other defendants listed in the suit include individuals alleged to be “Apex” or “Shark” bettors. Drew Dinkmeyer of Fort Lauderdale is alleged to be one of those bettors. Another, Eugene Haskell, is an employee of DraftKings who used inside information to play fantasy sports on both company sites. The suit lists his address as the same as Dinkmeyer’s.

Other defendants include Saahil Sud, an alleged “predator” player based in Boston, and Matthew Boccio of New York, a player who allegedly used insider information about other competitors’ roster selections to his advantage.

The multiple count lawsuit alleges breach of contract, negligence, civil conspiracy, civil RICO and violations of the Florida Deceptive and Unfair Trade Protection Act.

The lawsuit seeks the return of some $5 million in fees and certification of the proposed overall plaintiffs’ class and several “sub-classes” named after the defendants. It seeks the appointment of

Gomez and Garcia as the plaintiff class representatives, as well as compensatory treble damages and pre- and post-judgment interest.

The FanDuel and DraftKings class action lawsuit comes in the wake of growing scrutiny from state and federal authorities into the daily fantasy sports industry.

Last Thursday, the Nevada Gaming Control Board concluded that daily fantasy sports constitutes gambling and should be regulated. It ordered the suspension of online activities by FanDuel Inc. and DraftKings Inc. The Nevada board said it will require both companies to obtain licenses if they want to resume operations in the state.

To date, the fantasy sports industry has not been considered to be engaged in gambling with the companies pointing to language in the federal Unlawful Internet Gambling Enforcement Act. The law defines paid fantasy sports competitions as contests where the results are based on skill that involve “accumulated statistical results of sporting events,” and are therefore not considered gambling. However, the states of Arizona, Iowa, Louisiana, Montana, Nevada and Washington either have a more restrictive definition of a game of skill, or consider daily fantasy sports as gambling.

On Friday, federal investigators in Tampa reportedly subpoenaed the records of the Fantasy Sports Trade Association. The action is part of an FBI and Department of Justice investigation into an unknown number of fantasy sports operators. Two weeks ago, the office of the New York State Attorney General opened an inquiry into whether DraftKings and FanDuel employees won rich payouts with the help of information not available to the public.

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About Colson Hicks Eidson

Colson Hicks Eidson is a trial law firm based in Coral Gables, Florida, that represents consumers victimized by unfair and deceptive trade practices committed by companies in the private sector.

 

For more information, call 305-476-7400.

About Lagos & Priovolos

Lagos & Priovolos is a trial law firm in Miami. Firm co-founder Christos Lagos focuses on complex civil claims arising out of defective products, unsafe premises, automobile accidents, medical malpractice, and business disputes. Co-founder John Priovolos specializes in complex civil litigation and the defense of criminal prosecutions, including white collar crimes, DUI/traffic infractions, drug offenses, violent crimes and domestic violence.

For more information, call 305-960-1990, or visit www.attainjustice.com.

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Organizing Committee Appointee  Stephanie Casey formally honored by Judge Altman

MIAMI (September 9, 2023) –  Colson Hicks Eidson, a multilingual complex civil and commercial litigation law firm based in Miami, FL, today congratulated Stephanie A. Casey for her leadership as an ad-hoc organizer of the Florida Southern District’s 6th Biennial Bench and Bar Conference. She was recognized formally by Judge Roy Altman for her remarkable service at the event in Miami Beach on September 9, 2023. 

The Bench and Bar Conference of the Southern District – a collaborative effort between the US District Court and the South Florida Chapters of the Federal Bar Association – brought together legal professionals, judges, and experts in a sold-out event, attracting more than 1,000 attendees. Casey played a pivotal role in organizing this prestigious gathering, which featured a day-long program of engaging panel discussions with esteemed judges, legal experts, and members of the Southern District of Florida’s Bench and Bar.

One of the highlights of the conference was the “Supreme Court Roundup,” featuring distinguished speakers Miguel A. Estrada and Neal Katyal. Additionally, a thought-provoking panel discussion marked the 60th anniversary of the Supreme Court’s landmark Gideon v. Wainwright decision, with Yale Law Professor Akhil Reed Amar, the Honorable Kathleen M. Williams, and the Honorable Robert N. Scola, Jr. 

“We are immensely proud of our partner Stephanie Casey for her exceptional contributions to the 6th Biennial Bench and Bar Conference,” Senior Partner Curt Miner said. “Her leadership and commitment to advancing the legal profession are exactly in line with our firm values, and we look forward to her continued success.”

Casey was appointed to the Southern District’s Bench and Bar Committee by Chief Judge Cecilia M. Altonaga in May 2022.  

About Colson Hicks Eidson

Colson Hicks Eidson is a renowned law firm based in Miami, Florida that is recognized as one of the top trial firms in the United States. Built on a foundation of over 50 years of dedication forging strong client relationships, Colson Hicks Eidson handles local, national, and international litigation, with cases spanning from Miami, Florida, and throughout the United States, to matters in the Caribbean, Central America, South America, and Europe. Learn more at: www.colson.com.


MIAMI – Colson Hicks Eidson today announced that seven of its lawyers are included in the 2024 edition of The Best Lawyers in America. The recognitions are in a wide variety of fields, including Bet-the-Company and Personal Injury Litigation, as well as Criminal Defense: White-Collar.

“The firm is honored that Best Lawyers again recognizes the majority of our attorneys for their exceptional work and dedication to our clients,” said Dean C. Colson, Managing Partner of Colson Hicks Eidson.

Best Lawyers lists of outstanding lawyers are developed through peer review surveys where tens of thousands of lawyers evaluate their professional peers. The seven Colson Hicks Eidson attorneys recognized by Best Lawyers are:

Stephanie A. Casey
Commercial Litigation

Dean C. Colson
Bet-the-Company Litigation
Commercial Litigation
Personal Injury Litigation – Plaintiffs
Product Liability Litigation – Plaintiffs
Professional Malpractice Law – Defendants
Professional Malpractice Law – Plaintiffs

Lewis S. Eidson
Mass Tort Litigation / Class Actions – Plaintiffs
Product Liability Litigation – Plaintiffs

Julie Braman Kane
Commercial Litigation
Medical Malpractice Law – Plaintiffs
Personal Injury Litigation – Plaintiffs

Joseph J. Kalbac
Commercial Litigation
Insurance Law
Mass Tort Litigation / Class Actions – Plaintiffs
Personal Injury Litigation – Plaintiffs
Product Liability Litigation – Plaintiffs

Roberto Martinez
Bet-the-Company Litigation
Commercial Litigation
Criminal Defense: White-Collar

Curtis B. Miner
Commercial Litigation
Criminal Defense: White-Collar
Personal Injury Litigation – Plaintiffs

“Six of our attorneys have been recognized by Best Lawyers for more than a decade and we are excited to welcome Stephanie Casey as our newest addition to the list,” said Colson.

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About Colson Hicks Eidson

Colson Hicks Eidson is a renowned law firm based in Miami, Florida, that is recognized as one of the top trial firms in the United States. Built on a foundation of over 50 years of dedication forging strong client relationships, Colson Hicks Eidson handles local, national, and international litigation, with cases spanning from Miami, Florida, and throughout the United States, to matters in the Caribbean, Central America, South America, and Europe. Learn more at: www.colson.com.

Miami (June 6, 2023) – Colson Hicks Eidson has been recognized as one of the top three trial law firms in Florida in the “Litigation: Mainly Plaintiffs” category by the respected Chambers and Partners USA Legal Guide for the third year in a row. In addition, five of the Miami-based firm’s attorneys were also ranked individually.

“These rankings are a testament to the dedication and perseverance of our lawyers and our firm’s ability to handle a wide array of cases on behalf of our clients,” said the managing partner of Colson Hicks Eidson, Dean Colson. “As the South Florida business community expands and changes, we’re excited to continue serving new clients with the same spirit of excellence we developed when the firm first opened more than 50 years ago.”

Julie Kane, Stephanie Casey, Curtis Miner, Roberto Martínez, and Mike Eidson were all ranked individually for their work in the “Litigation: Mainly Plaintiffs” category. Miner and Martínez received the top ranking (Band 1), and Martínez also was ranked “Senior Statesperson” in the “White Collar Crime and Government Investigations” area.

The rankings are a result of the firm’s exceptional track record of securing multi-million-dollar judgments and settlements for its clients in areas that include commercial litigation, medical malpractice, products liability, class actions, multi-district litigation, and aviation and automobile accidents. Notably, in the past year, Colson Hicks Eidson secured judgments against four major cruise lines totaling almost half-billion dollars that were the first ever obtained in any case brought under Title III of the Cuban Liberty and Democratic Solidarity Act of 1996 (the LIBERTAD Act). In those cases, Carnival, MSC Cruises, Royal Caribbean, and Norwegian Cruise Lines were found liable for trafficking in the Havana Port Terminal that the Castro government illegally confiscated from the U.S.-owned Havana Docks Corp in 1960. Each cruise line is required to pay Havana Docks approximately $112 million.

The firm’s recent work also ranged from being part of the team of lawyers that secured over $1 billion in settlements for the families of the victims of the Champlain Towers South Condominium collapse to a $5 million jury verdict against Chen Neighborhood Medical Centers of South Florida LLC for failing to accurately diagnose breast cancer in a patient.

“We are proud to receive this recognition as one of the country’s leading trial firms,” said Roberto Martínez. “Our firm is committed to seeking justice in complex legal matters across the world and improving the lives of our clients,” added Curtis Miner.

To schedule a consultation, do not hesitate to contact an attorney at our law office. We have experience in a wide variety of cases for clients located throughout the nation and around the globe.

 

About Colson Hicks Eidson

Colson Hicks Eidson is a renowned law firm based in Miami, Florida, that is recognized as one of the top trial firms in the United States. Built on a foundation of over 50 years of dedication forging strong client relationships, Colson Hicks Eidson handles local, national, and international litigation, with cases spanning from Miami, Florida, and throughout the United States, to matters in the Caribbean, Central America, South America, and Europe. Learn more at: www.colson.com.

North Carolina (April 20, 2023) – Pennsylvania attorney Robert Mongeluzzi, a Saltz Mongeluzzi Bendesky founder, has been dubbed in the press as “the master of disasters.” He sends a 45-minute videotape consisting of case-specific liability and damages to the decision maker at the defendant’s insurance company.

“The decision maker is rarely in the room at a settlement conference or the mediation,” Mongeluzzi said. “They’re usually in some corporate tower in Chicago, New York or London. But the one time I know I can talk to them is when we have a settlement film.”

Florida attorney Curtis Mine, a Colson Hicks Eidson partner and an expert in structured settlements, said the Sunshine State “punches above its weight” in consolidating multidistrict litigation and class actions.

“The average time for completion of a civil lawsuit from filing to completion, in past years, the Southern District of Florida is ranked first or second in the country,” Miner said. “As the stakes increase, the defense strength increase.”

While both attorneys litigate differently and in different states, they both share a common thread: They routinely obtain so-called nuclear settlements and practice among the six states, including California, Florida, New York, Pennsylvania and New Jersey.

The states account for nearly 65% of the nuclear verdicts, per a U.S. Chamber of Commerce Institute for Legal Reform report.

“Nuclear settlements are a function of nuclear verdicts, and a recognition that going to trial is a risky proposition—both before and now,” said Lee Teichner, a partner at the Am Law 100 firm Holland & Knight.

Nuclear settlements, according to Robert Tyson, managing partner at Tyson & Mendes in San Diego, California, are either more than $10 million or are settlements in which non-economic damages, like pain and suffering, greatly exceed economic damages, such as medical bills.

Tyson explained to defense lawyers how to avoid runaway jury verdicts in his book, “Nuclear Verdicts: Defending Justice for All.”

This year, Tyson plans to publish a sequel with a more data-driven approach to the subject. Tyson has also developed software that uses artificial intelligence to advise insurance companies which of their cases is likely to end in nuclear verdicts.

Focus on Federal Appellate Courts
Thomas R. Kline, a founding partner of Kline & Specter in Pennsylvania, has taught at several law schools, including the Drexel University Thomas Kline School of Law. Kline routinely obtains these nuclear settlements, but objects to the name as a defense bar tactic.

Kline said there are restrictions placed in various states, which prevent jurors from returning eight-figure verdicts, which in turn prevents the lawyers from obtaining an eight-figure settlement. It is an example of the effort by insurance companies or governmental entities to restrict the damages that can be claimed and recovered.

“There’s a ‘Look what Texas is doing’ and then they try to do that in another state,” Kline said. “But each of these settlements are driven by the law in the state in which it is drawn. You can only change it in two ways: convince the highest appeals court or the legislature to change the law.”

And the stakes are high, as Miner of Colson Hicks said that future rulings by the federal appellate courts could change whether nuclear settlements continue to thrive in those six states in which nuclear verdicts abound.

Miner pointed to the U.S. Court of Appeals for the Eleventh Circuit—an outlier—which entered a ruling last week on what class representative incentive awards are allowed.

The Eleventh Circuit reversed a nearly $10 million settlement over the brain performance supplement Neuriva after finding a class member had standing to object.

The Eleventh Circuit ruling affirmed the precedent set in Johnson v. NPAS Solutions.

The appellate court held that incentive awards for class action representatives that compensate them for their time and reward them for bringing lawsuits are prohibited.

Miner cited the recent trend of success in appeals of settlements based on standing as an example of what could drive defense reform if the concept spreads outside of the Eleventh Circuit.

The result could affect where nuclear verdicts are heard and thereby, without the threat of trial, alter the jurisdiction in which attorneys obtain nuclear settlements.

“The ruling could disincentivize potential victims of consumer fraud or consumer deceptive conduct, participating in class actions,” Miner said. “They may just say, ‘Well, I just don’t want to have to put in that kind of time to do it if there’s nothing for it.”

Florida (May, 2022) – Nationally recognized trial law firm Colson Hicks Eidson is pleased to announce that attorney Thomas Kroeger has been named partner at the firm.

Thomas Kroeger handles a wide variety of complex civil litigation and appeals, ranging from personal injury and product liability matters to complex civil litigation and professional malpractice matters. Prior to joining the firm in 2019, Thomas served for over 8 years as senior attorney for The Florida Bar where he handled novel and complex lawyer regulation cases before the Florida Supreme Court. He also lectured frequently on issues of professional responsibility and ethics. Before that, Tom served as an Assistant Public Defender for the Miami-Dade County Public Defender’s Office where he tried over 20 jury trials to verdict. “Tom is a lawyer’s lawyer. He brings to every issue the eye of both a problem solver and strategist. He is a stellar advocate, whether it is in the courtroom, in a conference room, or on paper,” said Roberto Martínez. Thomas has represented clients in appeals before the Florida Supreme Court, Florida’s District Courts of Appeal, and the Eleventh Circuit Court of Appeal. 

Colson Hicks Eidson is a nationally recognized firm with over 50 years of litigation experience. Our legal team has diverse talents and expertise and is skilled at handling international, national, and local litigation in federal and state courts at the trial and appellate level. The Miami-based firm has a long track record of success and has gained a national reputation and respect among our peers throughout the country. We pride ourselves in being true trial lawyers, preparing every case with trial in mind and ready to try any case before a judge or jury. Our partners have extensive trial experience and we have a number of partners who are fellows in the American College of Trial Lawyers or the International Academy of Trial Lawyers. We are excited to bring these new partners to the team, as we know they will help us continue our tradition of excellence. For more information, please visit www.colson.com.

Miami (Jan 2022) Once again, the nationally-recognized trial law firm, Colson Hicks Eidson, has been recognized in the U.S. News & World Report, “Best Law Firms” 2022 edition by Best Lawyers. We are proud to share that Colson Hicks Eidson has been nationally recognized in the areas of:

In addition, Colson Hicks Eidson has been recognized regionally in the areas of:

Best Lawyers recognizes firms using a rigorous evaluation process. A law firm must have at least one lawyer recognized in The Best Lawyers in America to be eligible. At Colson Hicks Eidson, the following six attorneys have been recognized in “Best Law Firms” 2022 in the following areas:

Dean C. Colson 

Recognized since 2001:

  • Bet-the-Company Litigation
  • Commercial litigation
  • Personal injury litigation-plaintiffs

Joseph J. “Joe” Kalbac, Jr

Recognized since 2012:

  • Commercial litigation
  • Insurance law
  • Mass tort litigation and class actions for the plaintiffs
  • Medical malpractice law-defendants

Julie Braman Kane

Recognized since 2012:

  • Commercial litigation
  • Medical malpractice law-defendants
  • Medical malpractice law-plaintiffs

Roberto “Bob” Martinez

Recognized since 2005:

  • Bet-the-Company Litigation
  • Commercial litigation
  • Criminal defense: white-collar

Curtis B. “Curt” Miner

Recognized since 2011:

  • Commercial litigation
  • Criminal defense: white-collar

Lewis S. “Mike” Eidson

Recognized since 2007:

  • Mass tort litigation and class actions for the plaintiffs

Best Lawyers recognizes only the top 5% of private practicing attorneys each year nationwide.

Congratulations to our esteemed attorneys for all their dedication.

Colson Hicks Eidson Trial Law Firm

The nationally-recognized firm, Colson Hicks Eidson, has more than 50 years of experience. Our diverse legal team is exceptionally skilled at handling complex international, national, and local litigation and arbitration. The Miami-based firm has a long history of success and has gained notoriety and respect among our peers.