The woman who included her two children in a lawsuit filed in New Jersey against DraftKings for allegedly violating state consumer law has settled the case out of court.
According to court documents filed in Essex County Superior Court, Lisa D’Alessandro and her two minor children have amicably resolved their legal dispute with DraftKings, dismissing all claims against the operator. The suit was dismissed with prejudice putting an end to the legal issue between D’Alessandro and DraftKings that began in 2024.
This is the second settlement in the span of a week for attorney Matthew Litt, who represented D’Alessandro in addition to another client who sued DraftKings over its alleged VIP practices.
Husband’s gambling sparks lawsuit
Last December, D’Alessandro filed the lawsuit against DraftKings for allegedly breaching the New Jersey Consumer Fraud Act for allowing her husband to lose more than $940,000 while wagering with the operator despite her spouse having a gambling problem.
D’Alessandro alleged DraftKings violated state laws by actively participating in the gambling addiction of her husband, who was identified in court documents by his DraftKings username. She alleged DraftKings of targeting her husband by offering him incentives, bonuses, VIP status and other gifts that facilitated his gambling addiction.
The plaintiff noted that DraftKings employees receive training to identify problem gambling but they failed to stop her husband from betting while also providing him with promotions.
D’Alessandro included her children in the suit, claiming her husband stole money and gifts for milestones like their child’s baptism to gamble with DraftKings.
DraftKings cites Antar case in motion to dismiss
Prior to settling, DraftKings filed a motion to dismiss the suit in March arguing that D’Alessandro and her child were not consumers, a requirement of the New Jersey Consumer Fraud Act. The operator also argued that the plaintiffs failed to plead the basic elements of the fraud claim.
The order to dismiss cited a case between New Yorker Sam Antar and MGM Resorts, one that is being brought up with increasing frequency in these consumer lawsuits.
Antar sued MGM in 2022 alleging fraud, breach of contract and Racketeer Influenced and Corrupt Organizations (RICO) violations for improperly timing out his play and allowing him to wager with a gambling problem after previously placing himself on a self-exclusion list.
The U.S. District Court of New Jersey sided with the operators, concluding that they had no legal obligation to compel problem gamblers not to wager. It also determined that the state’s Consumer Fraud Act did not override casino law. Antar filed an appeal with state’s Third Circuit Court of Appeals, which upheld the decision.
SBC Americas reached out to DraftKings and D’Alessandro’s legal representation for comment on the settlement. This story will be updated if they respond.
Another settlement for DraftKings, Litt
It is the second settlement from DraftKings this month, as the sportsbook also settled another high profile lawsuit involving Dr. Kavita Fischer. As mentioned, the litigator behind a number of these consumer lawsuits, Litt, represented both clients.
In a four-month period, Fischer, a psychologist, claims she lost more than $150,000 wagering with DraftKings and she subsequently shared her story of gambling addiction in a piece in the Wall Street Journal.
Terms of the settlement agreement between Fischer and DraftKings were not disclosed.
Litt also represents Amit Patel in FanDuel lawsuit
Litt was also the attorney for the Antar case, which did not settle and played out to a conclusion that favored the player. It is a case that comes up regularly in these lawsuits and one his opponent drew attention to in a lawsuit that is still active.
Litt represents former Jacksonvill Jaguars staffer Amit Patel, who is suing FanDuel. Patel plead guilty to charges related to embezzling nearly $20 million from the pro football team and is currently serving out his federal sentence in South Carolina. However, last week Florida authorities brought state charges against him for the incident as well.
Though Patel plead guilty, he is suing FanDuel for allegedly coercing him into gambling millions on the site and enabling his addiction.
“To be clear, this suit does not allege liability on the basis that defendants passively permitted an addicted gambler to use its platform,” Litt argued in the complaint. “Rather, this suit alleges violation of statutory and common law because defendants actively and intentionally targeted and preyed on plaintiff with incentives, credits, and gifts to create, nurture, expedite, and/or exacerbate his addiction with the only possible outcome that he would ultimately hit rock bottom.”
There has been no action on the case since April, but the last filing was by FanDuel drawing the court’s attention to the Third Circuit ruling in the Sam A. Antar appeal.
