DraftKings NFTs Securities Trial Advances As Judge Rejects Motion To Dismiss Lawsuit
Summary
US Judge denied DraftKings' motion to dismiss a class action lawsuit by NFT buyers, accusing the company of violating federal securities laws. The lawsuit claims DraftKings' NFTs are unregistered securities, satisfying the Howey test. The Court found the NFTs to be investment contracts and securities, as they involved pooling of assets, common enterprise, and expectation of profits from the company's efforts. The decision could impact the legal status of NFTs.
