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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Colson Hicks Eidson has been named to the 2027 edition of “Best Law Firms” by Best Lawyers®, recognized at both the national and regional levels. Twelve of the firm’s attorneys were also named to the 2027 edition of Best Lawyers across multiple practice areas.

Best Lawyers® ranks top lawyers and law firms through a peer review process, using feedback from lawyers, clients, and professional references, along with firm data. 

We’re proud to be recognized in the following categories:

National

  • Mass Tort Litigation/Class Actions – Plaintiffs

Miami

  • Bet-the-Company Litigation
  • Commercial Litigation
  • Criminal Defense: White-Collar
  • Insurance Law
  • Mass Tort Litigation/Class Actions – Plaintiffs
  • Medical Malpractice Law – Plaintiffs
  • Personal Injury Litigation – Plaintiffs
  • Product Liability Litigation – Plaintiffs
  • Professional Malpractice Law – Defendants

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 nearly 60 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.

We are pleased to announce that the Miami-Dade Bar has named partners Stephanie A. Casey and Thomas A. Kroeger 2026 Circle of Excellence Award honorees. Stephanie was recognized in the Civil Litigation category and Tom in the Appellate category.

Both were selected for exemplifying skill, integrity, and professionalism in their respective practice areas, with honorees chosen by a committee of past recipients following input from the local legal community.

Stephanie has more than 15 years of experience handling complex civil litigation and class actions in state and federal courts, on both the plaintiff and defense sides. She represents businesses, injured consumers, whistleblowers, and individuals improperly denied health benefits.

Tom’s practice focuses on complex civil litigation and appellate matters, including personal injury, wrongful death, medical negligence, product liability, and other complex disputes. He has argued appeals before state and federal appellate courts, including the Eleventh and Eighth Circuit Courts of Appeals.

They will be honored at the Miami-Dade Bar’s Annual Awards Ceremony on November 18 at the Biltmore Hotel in Coral Gables. Register here. 

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 nearly 60 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.

We are pleased to announce that all of our partners have been named to the 2027 Lawdragon 500 Leading Litigators in America guide. Congratulations to Susan Carlson, Stephanie A. Casey, Dean C. Colson, Lewis S. “Mike” Eidson, Joseph J. Kalbac Jr., Julie Braman Kane, Thomas A. Kroeger, Zachary A. Lipshultz, Roberto Martínez, and Curtis Miner.

We are proud to celebrate their work and the exceptional litigation talent across our firm. This recognition reflects their dedication to excellence in advocacy, meaningful contributions to complex litigation matters, and continued leadership within the legal profession.

This guide is based on a record number of submissions, combined with journalistic research and independent vetting through clients and peers.

Click here to read the full guide.

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 nearly 60 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.

Colson Hicks Eidson has secured key rulings on behalf of the family of Cristian Fernandez in a wrongful death lawsuit arising from a 2023 collision between a Fisher Island ferry and a recreational vessel in Miami’s Government Cut.

During a September 1 hearing, Eleventh Judicial Circuit Judge Abby Cynamon granted the estate’s motion for partial summary judgment, finding that the defendant was operating and in control of the recreational vessel when it collided with a Fisher Island ferry. Cristian, a 27-year-old passenger aboard the recreational vessel, tragically lost his life in the collision.

The court also denied the defendants’ motion for partial summary judgment regarding the ferry, finding that the evidence concerning any alleged navigational rule violations was disputed.

Colson Hicks Eidson partner Thomas A. Kroeger argued the motions on behalf of Cristian Fernandez’s estate. Tom and partner Julie Braman Kane represent the Fernandez family in the litigation.

Colson Hicks Eidson is proud to continue representing the Fernandez family in seeking justice for Cristian.

Media coverage includes:

Law360 – Boater Was In Control In Fatal Ferry Crash, Fla. Judge Rules

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 nearly 60 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.

Congratulations to Colson Hicks Eidson attorneys, Susan Carlson, Stephanie A. Casey, Dean C. Colson, Lewis S. “Mike” Eidson, Joseph J. Kalbac, Jr., Julie Braman Kane, Thomas Kroeger, Roberto Martinez, and Curtis Miner, who have been recognized in the 2027 edition of The Best Lawyers in America®.

And congratulations to Eleni I. Constant, Zachary A. Lipshultz, and Sabrina S. Saieh, who are each recognized in Best Lawyers: Ones to Watch.

Best Lawyers’ lists of outstanding lawyers are developed through peer review surveys where tens of thousands of lawyers evaluate their professional peers. Best Lawyers recognized attorneys in all of the firm’s core practice areas. 

Susan Carlson

  • Personal Injury Litigation – Plaintiffs

Stephanie A. Casey

  • Commercial Litigation
  • Mass Tort Litigation / Class Actions – Plaintiffs

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. “Mike” Eidson

  • Mass Tort Litigation / Class Actions – Plaintiffs
  • Product Liability Litigation – Plaintiffs

Joseph J. Kalbac Jr. – “Lawyer of the Year”

  • Commercial Litigation
  • Insurance Law
  • Mass Tort Litigation / Class Actions – Plaintiffs
  • Personal Injury Litigation – Plaintiffs
  • Product Liability Litigation – Plaintiffs

Julie Braman Kane

  • Commercial Litigation
  • Medical Malpractice Law – Plaintiffs
  • Personal Injury Litigation – Plaintiffs

Thomas Kroeger

  • Personal Injury Litigation – Plaintiffs

Roberto Martínez

  • Bet-the-Company Litigation
  • Commercial Litigation
  • Criminal Defense: White-Collar

Curtis Miner 

  • Commercial Litigation
  • Criminal Defense: White-Collar
  • Mass Tort Litigation / Class Actions – Plaintiffs
  • Personal Injury Litigation –  Plaintiffs

Eleni I. Constant

  • Personal Injury Litigation – Plaintiffs

Zachary A. Lipshultz

  • Commercial Litigation
  • Mass Tort Litigation / Class Actions – Plaintiffs
  • Personal Injury Litigation – Plaintiffs

Sabrina S. Saieh

  • Mass Tort Litigation / Class Actions – Plaintiffs
  • Personal Injury Litigation – Plaintiffs
  • Product Liability Litigation – Plaintiffs

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 nearly 60 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.

We are pleased to announce that nine of our partners have been named to the 2026 Lawdragon 500 Leading Global Litigators guide. Congratulations to Stephanie A. Casey, Dean C. Colson, Lewis S. “Mike” Eidson, Joseph J. Kalbac Jr., Julie Braman Kane, Thomas Kroeger, Zachary A. Lipshultz, Roberto Martínez, and Curtis Miner.

We are proud to celebrate the outstanding work of our partners and the exceptional litigation talent across our firm. This recognition reflects their unwavering dedication to achieving outstanding results for clients and their continued leadership within the legal profession.

This guide is based on a record number of submissions, combined with journalistic research and independent vetting through clients and peers.

Click here to read the full guide.

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 nearly 60 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.