Fanatics Exec Rebuts DraftKings Claims in Legal Dispute
· 2024-03-25

Fanatics Exec Rebuts DraftKings Claims in Legal Dispute

Another day, another court filing in the ongoing case of DraftKings, Inc. v. Michael Hermalyn.

This time, it was Hermalyn and his lawyers filing in the United States District Court in the District of Massachusetts and seeking an Opposition to Plaintiff’s Motion for Preliminary Injunction.

In short: Hermalyn’s team is seeking to end the case, and to allow Hermalyn to continue to work at Fanatics.

In long: In February, DraftKings filed a federal lawsuit alleging their former head of VIP – Hermalyn – plotted to steal customer data and take it to Fanatics, where he recently took a similar role. The suit claims Hermalyn met with Fanatics’ CEO about a job over a year ago and lied about reasons for traveling to California to finalize the deal while downloading DraftKings’ confidential data. DraftKings sought to block Hermalyn from working for Fanatics due to a non-compete clause, which Hermalyn claims is void since he now resides in California. Fanatics called the allegations “ridiculous” and suggested DraftKings employees are leaving for “greener pastures.”

Days later, a judge ruled in favor of Hermalyn, more or less — and for the time being, the temporary order dictated that Hermalyn could not use DraftKings’ confidential information or solicit its employees or customers, but allowed Hermalyn to work at Fanatics. Both sides achieved part of their aims through the decision to compromise.

But now, while the two sides wait for another day in court, Hermalyn’s most recent filing seeks to throw out the whole thing.

Among the reasons listed in the 41-page filing include:

In response, Orin Snyder, the lead lawyer from Gibson Dunn, the firm handling the case, said, “The evidence against Mr. Hermalyn is open-and-shut. He stole valuable trade secrets, destroyed evidence to cover his tracks and then lied about it all. We look forward to the upcoming hearing.”

Upon seeing the above quote from Snyder, lawyers for Hermalyn from Beck Reed Riden LLP reached out to Sports Handle with their own salvo.

“We’re disappointed but not surprised by DraftKings’ lawyer’s irresponsible and baseless statements directed at our client,” wrote Russell Beck. “DraftKings’ attempt to tarnish Mr. Hermalyn’s reputation is a desperate ploy in their sordid playbook of petty retribution. But truth is resilient against their falsified narrative. Their shameful crusade, fueled by baseless claims, only exposes their own moral bankruptcy. It’s no surprise employees are trying to flee that toxic culture.”

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