Daily fantasy sports website FanDuel is facing more legal problems, as Washington wide receiver Pierre Garcon has filed a class-action lawsuit against the company on behalf of all NFL players.
This marks the third class-action lawsuit filed against FanDuel in the past three weeks. ESPN.com’s Darren Rovell reported Oct. 9 that FanDuel and rival site DraftKings were the subject of a suit filed in Manhattan by a man named Adam Johnson, accusing the companies of negligence, fraud and false advertising:
The suit claims that daily fantasy games put forth by the two companies are misrepresented as fair. That case is made mainly through the recently revealed policies of the two companies that allowed employees to enter contests on the other’s site for cash prizes, along with the rest of the population.
Rovell reported Oct. 12 that another class-action lawsuit had been filed against both sites in Illinois. Those lawsuits came after Joe Drape and Jacqueline Williams of the New York Times reported Oct. 5 a DraftKings employee won $350,000 from FanDuel after mistakenly publicizing fantasy data prior to Week 3 of the NFL season.
FanDuel and DraftKings released a joint statement, included in the New York Times report, supporting their business practices and stating they monitor employees for potentially fraudulent tactics:
Both companies have strong policies in place to ensure that employees do not misuse any information at their disposal and strictly limit access to company data to only those employees who require it to do their jobs. Employees with access to this data are rigorously monitored by internal fraud control teams, and we have no evidence that anyone has misused it.
Garcon’s lawsuit on behalf of NFL players puts FanDuel further under the microscope. Daily fantasy sports websites have exploded in popularity in recent years, with FanDuel and/or DraftKings having major partnership deals with the NFL, NHL and MLB.
The NFL’s contract is with DraftKings, so Garcon’s class-action lawsuit calls into question FanDuel’s right to use NFL players’ names and likenesses to promote its business for profit.