DraftKings and Fanatics face off in court over executive defection

DraftKings and Fanatics face off in court over executive defection

Article brief provided by Sports Handle
  • Jeff Edelstein, Sports Handle
April 17, 2024 8:18 PM
  • Jeff Edelstein, Sports Handle

The battle between DraftKings and Fanatics exploded into open court during a hearing Tuesday, where the judge heard about secret phone calls, the alleged stealing of trade secrets, and offers for DraftKings employees to jump ship for millions of dollars, according to a Boston Globe report.

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The case involves Michael Hermalyn, the former head of VIP operations for DraftKings who took a similar job with Fanatics. DraftKings filed a federal lawsuit against Hermalyn, alleging he plotted to steal confidential information and take it to Fanatics in violation of his non-compete agreement.

The lawsuit claims Hermalyn met with Fanatics’ CEO, downloaded DraftKings’ confidential business plans, and then quit to take a similar role at rival sportsbook Fanatics.