Fanatics Exec Rebuts DraftKings Statements in Lawful Dispute

A different working day, an additional courtroom filing in the ongoing case of DraftKings, Inc. v. Michael Hermalyn.

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

In shorter: Hermalyn’s staff is searching for to stop the circumstance, and to allow for Hermalyn to proceed to perform at Fanatics.

In long: In February, DraftKings filed a federal lawsuit alleging their previous head of VIP – Hermalyn – plotted to steal consumer knowledge and choose it to Fanatics, where by he a short while ago took a very similar part. The suit promises Hermalyn met with Fanatics’ CEO about a task about a yr back and lied about causes for traveling to California to finalize the offer even though downloading DraftKings’ private details. DraftKings sought to block Hermalyn from functioning for Fanatics thanks to a non-compete clause, which Hermalyn promises is void given that he now resides in California. Fanatics known as the allegations “ridiculous” and instructed DraftKings workforce are leaving for “greener pastures.”

Times afterwards, a judge dominated in favor of Hermalyn, a lot more or fewer — and for the time remaining, the short term order dictated that Hermalyn could not use DraftKings’ private details or solicit its employees or prospects, but authorized Hermalyn to work at Fanatics. Equally sides realized component of their aims by the conclusion to compromise.

But now, although the two sides wait around for an additional working day in court docket, Hermalyn’s most the latest submitting seeks to toss out the full point.

Laundry record

Amid the reasons shown in the 41-page submitting include things like:

• DraftKings has a record of aggressively attacking personnel who leave for other companies like Fanatics, in accordance to the filing, and since Fanatics introduced its sportsbook in 2021, 186 DK personnel have used for positions at Fanatics.
• DraftKings is attempting to make an case in point of Michael Hermalyn to deter many others from leaving and halt Fanatics’ recruiting, the filing alleges.
• The submitting promises DraftKings’ allegations that Hermalyn improperly “downloaded” paperwork on a “non-DK device” and stole information are outrageous and phony. Hermalyn was approved to view function paperwork on his own telephone, which all DraftKings personnel routinely use considering the fact that the organization does not concern telephones. His alleged “data theft” was only transferring information amongst DraftKings equipment with IT support. Also, in accordance to the submitting, DraftKings omits that before joining Fanatics, Hermalyn returned all organization home, files and information and facts, contradicting statements he stole trade secrets and techniques.
• DraftKings accuses Fanatics of poaching a VIP shopper, but the client Hermalyn “introduced” to Fanatics was by now a lengthy-time Fanatics buyer.
• DraftKings alleges Hermalyn reached out to DraftKings staff to arrive do the job at Fanatics, but the submitting alleges the staff members solicited by Hermalyn had basically arrived at out to him initial just after he joined Fanatics.

In response, Orin Snyder, the guide attorney from Gibson Dunn, the organization handling the case, said, “The proof versus Mr. Hermalyn is open up-and-shut. He stole worthwhile trade insider secrets, wrecked evidence to cover his tracks and then lied about it all. We appear forward to the upcoming hearing.”