Hermalyn, DraftKings Spar In Court Over Alleged Fanatics Job Offers

Written By

Updated on


DraftKings and the former head of its VIP program faced off in court Wednesday for the first time since their lawsuits against each other started more than two months ago.

Michael Hermalyn, who left DraftKings for a similar role with Fanatics, did not solicit his former DraftKings colleagues to join him as accused, he told the District Court of Massachusetts. The arguments concerned DraftKings’ request for a preliminary injunction to replace a temporary restraining order, though no final decision was made.

“Absolutely not,” he said when asked directly about the alleged offers, according to the Boston Globe.

DraftKings wants Hermalyn prevented from working with Fanatics during what should be a non-compete period required by his contract. Hermalyn, though, says his move to California to work for Fanatics means he is covered by state law that nullifies non-compete orders for residents.

DraftKings employees confirm offers made

Andrew Larracey and Hayden Metz gave further details about their conversations with Hermalyn previously described in depositions. Both men said Hermalyn offered them jobs on Feb. 1, his first day on the new job, and allegedly began those discussions while the two were in a DraftKings conference room.

The men say Hermalyn told them to switch the call to FaceTime and sweep the room so he could confirm there was no one else in the room. Hermalyn said he did not remember asking that and said it is “not something I would do.”

Larracey says he was offered a compensation package of more than $3 million and noted it was a “big ask” considering he would have to move his family to California from Boston. He eventually interviewed with Fanatics but never received a job offer.

Metz, who moved into Hermalyn’s old job, said he was initially offered a compensation package worth $5 million, which was later raised to $8 million.

Hermalyn denies stealing documents

Hermalyn again said he did not improperly access any DraftKings files amid his move to Fanatics.

He confirmed he copied internal DraftKings documents because he was switching to a new computer.

DraftKings says Hermalyn accessed confidential company files without reason after he already knew he was taking the job with Fanatics. The Boston-based company is concerned Hermalyn will share trade secrets with Fanatics to help grow the VIP program.