rewrite this title and make it good for SEO DraftKings and NFLPA Reach Settlement Over NFT Dispute – Cryptoflies News

DraftKings has settled a lawsuit filed by the National Football League Players Association (NFLPA) over the closure of its non-fungible token (NFT) marketplace and breach of contract.

In a joint filing made on Monday in New York federal court, both parties confirmed they had reached a settlement in principle. They requested a brief pause to finalize the agreement. 

The NFLPA’s lawsuit, filed on August 26, argued that DraftKings attempted to terminate a contract signed in 2021, which allowed the company to use the names, images, and likenesses of NFL players for its now-closed NFT marketplace. 

The association claimed that by shutting down the platform, DraftKings was trying to avoid paying around $65 million in guaranteed payments owed under the contract.

DraftKings officially shut down its Reignmakers NFT game and marketplace at the end of July 2024. This move followed a market decline and a legal challenge in which DraftKings was being sued by NFT buyers who accused the company of selling unregistered securities. 

In July, a U.S. judge denied DraftKings’ request to dismiss a class action lawsuit over the NFTs, further complicating the company’s position. 

DraftKings entered the NFT space in July 2021, driven by growing interest in digital collectibles like NBA Top Shot.  The company’s move into the market was marked by its filing of NFT-related trademark applications in late 2022, signaling its commitment to Web3.