DraftKings extortion lawsuit moves forward

Added:
DraftKings extortion lawsuit moves forward

A New York federal court is allowing VIP player Steven Jacobs’ lawsuit against DraftKings to move forward.

Jacobs sued DraftKings last June, claiming the company worked with Oscar Jones and bettor Gadoon “Spanky” Kyrollos to threaten and defraud him. He alleges that DraftKings gave Kyrollos his personal information, leading to an extortion attempt demanding $500,000.

According to Jacobs, Kyrollos even sent someone to his home to pressure him. Kyrollos later claimed on Twitter that he was “bluffing” about accessing Jacobs’ account through DraftKings employees at a sports betting event. However, the court found this alleged connection serious enough to proceed with most of Jacobs’ claims, including aiding and abetting battery.

Judge Natasha C. Merle said:

“While plaintiff has not alleged exactly how Spanky or the masked man obtained his personal information, plaintiff has alleged that he put defendant on notice of potential criminal activity to gain access to plaintiff’s information, which then allegedly came to fruition. The court finds the inference that DraftKings knew of this potential and failed to act to safeguard that information reasonable based on these allegations. Accordingly, plaintiff has sufficiently pled claims against DraftKings for aiding and abetting assault and battery.”

Jacobs argues that DraftKings staff, including VIP hosts, played a huge role in exposing his sensitive information, allowing Spanky and his associates to track him.

However, DraftKings has dismissed the lawsuit, claiming that the company is not responsible for employees’ actions outside of their duties.

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