A New Orleans man is suing popular fantasy sports sites in a class action case, alleging insider information was used by employees to beat other paying customers.
Artem Genchanok, individually and behalf of others similarly situated, filed a lawsuit Oct. 13 in U.S. District Court Eastern District of Louisiana against FanDuel Inc. and DraftKings Inc., alleging employees used inside information to bet on other fantasy sites and beat out the regular players.
According to the complaint, employees of these sites have access to insider information that the public does not. They are not allowed to play on the site they work for but they are allowed to play on the sites of their competitors, the suit says.
The ability to do this gives them a huge edge against players without access to this information, the complaint states. The plaintiff says DraftKings employees have won more than $6 million playing at FanDuel, and the defendants are well aware their employees play there.
Genchanok seeks unspecified damages for the class, a cease and desist order against these practices, litigation costs and other relief deemed appropriate by the court. He is represented by attorneys James R. Dugan, II, David B. Franco, and Lanson Bordelon of The Dugan Law Firm in New Orleans, and Jeremy Schafer of Miller Legal in Washington.
U.S. District Court for the Eastern District of Louisiana case number 2:15-cv-05127-MVL-KWR.