FanDuel, a company that offers daily fantasy sports contests, has asked a New York state court to shut down a consumer arbitration process that it says involves too many participants. The company filed its motion in late January and is seeking class-action status for the case.
FanDuel's legal team argues that the arbitration process violates New York state law because it involves too many people. The company is asking the court to either halt the arbitration or order that it be conducted in a way that complies with state law.
In its motion, FanDuel points out that the arbitration process was launched by a single individual who is seeking to recover up to $5,000 in damages. The company says that the process should be halted because it is unfair to require FanDuel to defend itself against a claim involving so many people.
A spokesperson for FanDuel said that the company "believes in the importance of arbitration as a means of resolving disputes, but we also believe that it's important for any arbitration to be conducted fairly and in accordance with the law."
The spokesperson added that FanDuel is committed to ensuring that its arbitration process is fair to all participants. The company says it has already made changes to the process in an effort to address some of the concerns raised by its legal team.
It's not clear what the outcome of the motion will be, but it's likely that the court will rule on the matter in the coming months.
