A US judge refused to dismiss a collective lawsuit brought by NFT buyers against DraftKings and determined its securities attributes.

Odaily Planet Daily News According to a judge in Massachusetts, USA, refused DraftKings' request to dismiss a collective lawsuit initiated by its NFT buyers. The lawsuit claims that these tokens are investment contracts, laying the foundation for future court battles over whether NFTs are securities. DraftKings is a sports-themed NFT based on the Polygon blockchain. Buyer Justin Dufoe first represented other owners to sue DraftKings in March 2023, claiming that these NFTs meet the requirements of the Howey test. In this recent ruling, the court recognized that DraftKings' NFT involves financial investments, consolidates assets into a common enterprise, shares risks and profits, and reasonably expects to profit from DraftKings' actions, so classifying it as a security under the Howey test is reasonable. The court believes that the value of NFT depends on the success of the DraftKings market, which is a reasonable statement, and points out that the value changes in sync with the interest of specific markets, which has been addressed in previous cases reviewing NFTs. (CoinDesk)