DraftKings Resolves Corporate Espionage Lawsuit Against Former VIP Executive
DraftKings has reached a confidential settlement with former VIP head Michael Hermalyn in their corporate espionage lawsuit. The dispute began when Hermalyn left DraftKings to join rival Fanatics, prompting allegations of stolen client information and business plans.
Man in business suit looking neutral
The settlement follows the 1st U.S. Circuit Court of Appeals' decision to uphold a lower court injunction that limited Hermalyn's work at Fanatics. The original ruling enforced a noncompete clause from his DraftKings contract.
Key points of the dispute:
- DraftKings claimed Hermalyn planned his move to Fanatics for over a year
- The lawsuit alleged he took confidential VIP client information and Super Bowl plans
- Hermalyn denied all allegations, stating he received Fanatics' offer in January 2024
- He challenged the noncompete agreement under California law, where he was based
The injunction restricts Hermalyn from working on DraftKings-related business at Fanatics until February 1, 2025. His attorney, Russell Beck, confirmed the settlement's confidential nature and Hermalyn's commitment to honor his DraftKings contractual obligations.
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