DraftKings has reached a $10 million settlement to resolve a class action lawsuit alleging violations of Federal Securities Law in connection with its NFT marketplace. The agreement, detailed in a federal court filing, aims to provide compensation for legal fees, settlement costs, and reimbursements to individuals who purchased or interacted with DraftKings NFTs. The lawsuit was initiated by Justin Dufoe in 2023, claiming that the NFTs sold were unregistered securities. While DraftKings sought to dismiss the lawsuit, a U.S. District Court judge ruled against the motion. The NFTs were part of DraftKings Reignmakers, a fantasy sports product that generated over $280 million in trading volume but faced closure in 2024, offering users options to cash out or transfer their NFTs. A hearing for final settlement approval is anticipated later this year. DraftKings Inc. shares have seen a slight increase, reflecting a recovery trend since the lawsuit's initiation.

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