DraftKings filed a lawsuit against their former executive, Michael Hermalyn, over accusations that he had a ‘secret plan’ to aid Fanatics by stealing client data before taking a job at the company. Hermalyn responded to these allegations with a 16-page filing in the U.S. District Court for Massachusetts, claiming that DraftKings’ accusations are “completely false and fabricated.” He also expressed his shock and disappointment at the aggressive actions taken against him.
In response to Hermalyn’s filing, DraftKings refused to provide a comment. Hermalyn also refuted the claim that he was in Los Angeles at the offices of Fanatics on January 29th, citing an email he sent to his co-workers about taking time off due to the death of a friend. He provided the name of the friend who had passed away from cancer on January 27 and stated that it was a difficult week emotionally as he was contemplating a career move to join Fanatics VIP.
Hermalyn clarified that the job offer from Fanatics officially came on January 27, and he met with the CEO of Fanatics, Rubin, in Pennsylvania, not California as claimed by DraftKings. He also completed his transfer to Fanatics on February 1. He insisted that he did not discuss joining Fanatics with Rubin or anyone else in 2023, nor did he encourage his colleagues at DraftKings to do so.
The legal battle between Hermalyn and DraftKings continues to unfold, with conflicting claims and counterclaims. This ongoing dispute raises questions about corporate espionage and the competitive nature of the sports betting industry. Both parties are standing their ground, and it remains to be seen how this legal showdown will ultimately be resolved.