DraftKings Hermalyn lawsuit update; ruling in favor of DraftKings
Hermalyn has been enjoined of sharing confidential information and poaching DraftKings’ staff.
An injunction has been issued in the DraftKings Hermalyn lawsuit, with the United States District Court of Massachusetts ruling in favor of DraftKings.
The court ruled that Michael Hermalyn, a former DraftKings employee and current President, VP and Head of the LA Office of Fanatics, is enjoined from using or disclosing confidential information outside of company permission and is enjoyed from transferring confidential information from the company’s premises – a substantial point in the original allegation.
Hermalyn will also be unable to, for a 12-month period beginning February 1 2024, solicit DraftKings staff with the intention of having them move company or role, having been accused of poaching staff for his current employer, Fanatics. In the same period, he will also be unable to provide services for competing businesses, not limited to but including Fanatics, in relation to the role he held in the six months prior to February 1.
Hermalyn will also be unable to move, destroy, delete or alter media that contain or are derived from confidential information.
Based on this ruling, DraftKings will also post a security bond of $150,000 no later than May 7 2024.
Hermalyn had previously called the lawsuit an ‘unnecessary character assassination’ in his response to the original allegations. It is also not DraftKings’ only recent lawsuit, having faced a class action lawsuit by the Public Health Advocacy Institute in Massachusetts in December.
On the subject, a DraftKings spokesperson stated the following…
“Today’s ruling by the Court is another victory for DraftKings in its effort to hold Mr. Hermalyn accountable for his brazen attempt to clone DraftKings’ successful VIP program by stealing DraftKings’ employees and trade secrets.
“We are pleased the Court enforced Mr. Hermalyn’s non-competition obligations in the United States, including ordering him to cease providing services for Fanatics relating to the work he performed for, or the information he obtained from, DraftKings.
“The Court also correctly ordered Mr. Hermalyn not to solicit DraftKings employees, not to use any confidential company information, and not to destroy or delete documents containing DraftKings’ confidential information.
“In reaching this result, the Court rightly saw through Mr. Hermalyn’s lies and deception, noting that the evidence suggests that Mr. Hermalyn “struggled with candor to the court” and describing his testimony as “not credible,” “evasive,” and “[a]t best…highly misleading.”
“Finally, the Court denied Mr. Hermalyn’s motion to dismiss or stay the case against him. DraftKings looks forward to continuing to prosecute its claims against Mr. Hermalyn to ensure he is held fully accountable for violating his legal obligations.”
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