Draft Kings Class Action Argues Data Leak Revealed "Insider Trading" – But Can Case Survive Arbitration Clause?

Draft Kings and Fan Duel, competing daily fantasy sports (DFS) sites, have been vying for attention by flooding the airwaves with a reported 60,000 commercials this year. However, a recent data leak has resulted in less desirable attention from lawmakers, regulators and – most recently – the class action plaintiffs' bar. ( Read more about the class action and related issues after the break.)

Daily Fantasy Sports – A Brief Primer

Before getting to the lawsuit, it's helpful to understand how DFS work. We'll use NFL football for our example. Like traditional auction league fantasy football, team "owners" work within a pre-set salary cap to draft the team of NFL players they expect to put up the gaudiest stats. At the end of the contest (typically an NFL weekend), the highest score wins the grand prize, but, depending on the number of participants in the pool and payment structure, many more might also win cash prizes. Contest entry fees range from 25 cents to over