LOS ANGELES (Legal Newsline) – A popular fantasy sports gaming website is being sued over allegations that it falsely advertised a promotion for new members online.
Wesley Leung filed the lawsuit in Superior Court of California on March 13 against FanDuel, an online fantasy sports website where users pay money to play in the fantasy sports games. The users can win money if their team wins a match. The defendant removed the case to U.S. District Court for the Central District of California on April 28 under the Class Action Fairness Act.
U.S. Courthouse in Los Angeles
Leung claims FanDuel advertised it would pay a “Welcome Bonus” that included a “dollar for dollar” match of up to $200, to all new members. The lawsuit states instead FanDuel uses a “very intricate formula” that requires users to keep playing and invest more money.
Leung said the welcome bonus is four percent of the entry fee for each contest entered by that customer.
“For example, if a customer signs up and deposits $200 as his initial deposit, FanDuel does not match the customer’s deposit with a bonus of $200, and the customer does not have $400 in his account,” the lawsuit said. “Instead, the customer is required to spend his deposit money by entering contests. If the customers enters a contest for $200..FanDuel distributes a bonus of $8 (4 percent of the contest entry fee.)”
Leung is seeking class status for all those who signed up with FanDuel expecting the welcome bonus. He is also seeking an unspecified amount of damages.
He is represented by Mark A. Milstein of Milstein Adelman, LLP in Santa Monica, Calif., and Sarah L. Gough of Flaherty Hennessy, LLP in Playa del Rey, Calif.
