DraftKings and FanDuel Sued for Insider Trading-Like Practices

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iStock/Thinkstock(NEW YORK) — The biggest names in fantasy football are getting sued.

On Thursday, a class action lawsuit was filed against DraftKings and FanDuel for negligence, fraud, and false advertising.

According to ESPN, the suit filed in federal court in Manhattan by Adam Johnson of Kentucky says recent policies between the two companies allowed employees to enter on other sites to play for prizes.

ESPN reports the suit says, “DraftKings performs analytics to determine winning strategies, return on investment of certain strategies and even how lineups on FanDuel would do if they were entered into DraftKings contests.”

With that information, employees of DratfKings could then play on a competitor’s site.

Both DraftKings and FanDuel said this week they will no longer allow employees to participate on competitors’ sites.

The lawsuit comes recently after a DraftKings employee posted his player roster percentages and his subsequent $350,000 take in a FanDuel contest, reports ESPN.

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