DraftKings Seeks Injunction Against Former VIP Head With New Allegations

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Former VIP head Michael Hermalyn already disclosed confidential information from DraftKings and contacted some of their high-value players after moving to Fanatics, the company alleges in a new filing.

DraftKings called for a preliminary injunction, which would replace the temporary restraining order against its former employee Hermalyn, who left to take a job with Fanatics a week before the Super Bowl. The District Court of Massachusetts did not stop Hermalyn from beginning his work at Fanatics.

Hermalyn called for the case to be dismissed based on the fact that he has filed against DraftKings in California state court as a California resident. Hermalyn filed to be freed of DraftKings’ non-compete agreements as they are invalid for California residents and has requested DraftKings pay more than $300,000 in his alleged attorney fees for their attempts to take the case out of that state court.

Hermalyn’s alleged pitches to DraftKings employees

DraftKings submitted new details this time, including two affidavits from employees who say Hermalyn solicited them for jobs at Fanatics with one submitting an application while still on the phone.

Andrew Larracey and Hayden Metz called Hermalyn from a DraftKings conference room when they found out his Salesforce account had been deactivated, the two said in their affidavits.

Hermalyn called back shortly after and made the two scan the room on a video call to prove they were alone. He then detailed the two positions he would like both men to apply for: a senior director for Larracey and a VP role for Metz.

Details discussed as well

The discussion moved on to compensation for the two men. Hermalyn also discussed their relocation to Los Angeles, which he said he did in part because of the non-compete agreements he had. He also said Fanatics would cover any legal fees regarding violation of non-competes.

DraftKings said this alone was using confidential information because Hermalyn relied on salary figures he knew the men made, which he only knew because of his access to confidential information.

Hermalyn used Fanatics IP at Rubin’s home

During his deposition, Hermalyn stated he never connected to the internet at a Fanatics office, as DraftKings previously thought.

He did, however, stay at Fanatics CEO Michael Rubin‘s home, where he accessed a Fanatics IP address while still working for DraftKings, he disclosed at the deposition.

DraftKings alleges Hermalyn then downloaded confidential information on non-company devices and also downloaded documents related to its VIP program and plans for the Super Bowl while at Rubin’s home.