The Attorney General for the state of Missouri, Chris Koster, has filed a lawsuit against Gridiron Fantasy Sports and its owner for swindling a number of customers out of prize winnings in its fantasy sports leagues, Adlawaccess has reported.
Those taking part in the fantasy football and baseball leagues were required to pay entry fees in which they were promised could lead to the chance to win a cash prize.
However, the investigation by the Attorney General found that although at the end of the 2010 season the company notified winners and told them how much they had won, the AG seems to think it didn’t tell them all.
Allegedly, total of at least $151,261 of the promised prizes weren’t paid out by Gridiron.
According to the suit, the company used the fantasy baseball entry fees to pay the fantasy football winners and the football entry fees to pay the baseball winners. But because the amount of money available would depend on the number of participants, the company could not guarantee the prizes. So scandalous.
So what now? The AG has now asked the court to issue injunctions to the members of the company in order to prohibit any further violations of the law. Damn right! The injunctions would serve to require the defendants to provide full restitution to victims and pay all court and investigative costs. They would also require the defendant to pay the state a civil penalty and an amount equal to 10 percent of total restitution ordered.
We are yet to hear whether these injunctions will be authorised by the court.