The court prohibits Michael Hermalyn, the former executive, from sharing sensitive information with his new employer, Fanatics.
Fanatics VIP President and ex-DraftKings SVP, Michael Z. Hermalyn, faced a temporary ban on sharing sensitive info with Fanatics after a restraining order issued last Thursday. While prohibited from using confidential data or soliciting DraftKings connections, he was allowed to continue working at Fanatics.
Following his resignation from DraftKings, Hermalyn filed a lawsuit challenging a restrictive non-compete policy, arguing it was unenforceable in California. DraftKings countered, accusing him of conspiring with Fanatics to gain insider information, potentially impacting the Super Bowl. Fanatics VIP denied the allegations, deeming them false and fabricated.
Hermalyn’s defense refutes any wrongdoing
The recent legal development prevents Hermalyn from sharing confidential information with Fanatics, issued by US District Judge Julia Kobick in Boston, Massachusetts. The judge cited sufficient evidence for the temporary restraining order, aiming to maintain the status quo until more facts emerge. Hermalyn must return DraftKings’ confidential information within three days and disclose any shared details with third parties.
Despite the claims, Hermalyn’s defense, led by Russell Beck, denies any wrongdoing, stating the return of all former employer’s computer equipment. The order is expected to last until the April hearing for DraftKings.
A spokesperson for DraftKings explained:
We are pleased that the judge granted a temporary restraining order in favor of DraftKings ordering Mr. Hermalyn not to solicit DraftKings employees or customers, and not to use any confidential company information.
A DraftKings spokesperson expressed satisfaction with the newly issued temporary restraining order for Hermalyn. They emphasized the significance of preventing the former employee from utilizing confidential information or engaging with DraftKings’ current customers and employees.