9/13/2016
NYC Marathon Org., Runners Settle Entry Lottery Fight ­ Law360
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NYC Marathon Org., Runners Settle Entry Lottery
Fight
By Fola Akinnibi
Law360, New York (September 12, 2016, 2:41 PM ET) ­­ The nonprofit group that organizes the
New York City Marathon and a proposed class of runners suing over the lottery used to select
some of the race’s runners on Friday said that they settled their dispute in New York federal court
after months of negotiations.
In a bid for preliminary approval of the proposed settlement, the proposed class of runners said
that the settlement, in which New York Road Runners Inc. said it would cease holding the lotteries
for three years and reimburse some runners for the fees they paid to enter the lottery was fair
and reasonable, and urged the New York federal judge to approve it.
“While class counsel are confident in their ability to prove their case and attain class certification,
the settlement avoids the risks inherent in further litigation, and thus weighs in favor of
preliminary approval,” the motion on Friday said.
Under the proposed settlement’s terms, NYRR would issue credits, amounting to about $2.1
million, for racers who paid a fee to enter the lottery but were unable to race, along with some
who paid the fee and were given the opportunity to race.
In addition, NYRR said it will not charge drawing or processing fees, adding that it will not apply
for a license to hold a lottery for at least three years. Also, the nonprofit will make disclosures
about the entry process for its marathons and half marathons and make a $100,000 donation to
the New York City Parks Foundation, the motion said.
“We’re very pleased that we’ve been able to settle the matter,” Michael Cardozo, of Proskauer
Rose LLP, an attorney for NYRR, told Law360 on Monday.
Charles Konopa and Matthew Clark, both Utah residents, filed suit against the nonprofit
organization in January. The suit claims that the drawing used by the group to select some of the
runners who are allowed to register for the signature 26.2­mile race each year is prohibited under
New York state law.
According to the complaint, most chance­based drawings or lotteries are not run by the state
because the biggest winner is always the organizer.
Konopa and Clark claim that approximately 80,000 runners enter the lottery each year, but that
fewer than 18 percent of those entrants qualify to register for the marathon. Konopa said that he
entered the marathon lottery in 2014 but was not selected, and Clark entered in 2011 and 2015
without being chosen, the complaint said.
Representatives for the proposed class did not immediately respond to a request for comment on
Monday.
The runners are represented by Mark C. Rifkin, Gregory M. Nespole and Correy A. Kamin of Wolf
Haldenstein Adler Freeman & Herz LLP, Randall S. Newman of Randall S. Newman PC, Judith L.
Spanier and Nancy Kaboolian of Abbey Spanier LLP, and Phillip E. Lowry and Bryson R. Brown of
http://www.law360.com/articles/838607/print?section=classaction
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NYC Marathon Org., Runners Settle Entry Lottery Fight ­ Law360
Christensen & Jensen PC.
NYRR is represented by Michael A. Cardozo and Chantel L. Febus of Proskauer Rose LLP.
The case is Konopa et al. v. New York Road Runners Inc., case number 1:16­cv­00450, in the U.S.
District Court for the Southern District of New York.
­­Additional reporting by Matthew Perlman. Editing by Stephen Berg.
All Content © 2003­2016, Portfolio Media, Inc.
http://www.law360.com/articles/838607/print?section=classaction
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