DraftKings has filed a formal civil complaint against former VP Michael Hermylan for stealing privileged and highly sensitive information.
Front Office Sports’ A.J. Perez confirmed that DraftKings filed in Massachusetts on Monday, accusing the executive of stealing “many of DraftKings’ most commercially sensitive documents”.
Hermalyn was allegedly colluding with Fanatics executives as far back as a year already and engaged in “clandestinely” meetings with Fanatics executives, including CEO Michael Rubin, at last season’s Superbowl.
The thick plot expands as Hermalyn is alleged to have “improperly” encouraged his subordinates at DraftKings to also meet with Fanatics senior managers.
“Hermalyn knows DraftKings’ playbook on how to engage and retain VIP clients,” the lawsuit reads.
“On information and belief, Hermalyn, acting in concert with Fanatics, timed his departure and theft of confidential information to coincide with the critical days leading up to the Super Bowl to further a scheme to irreparably interfere with DraftKings’ customer and business relationships by pursuing those relationships at Fanatics using the confidential information and goodwill that he obtained at DraftKings.”
In an unsurprising move Hermalyn has filed his own suit against DraftKings in California as he looks to be released from his non-compete clause.
Hermalyn has filed his own lawsuit against DraftKings in California in an effort to challenge his non-compete.
The Massachusetts suit filed by DraftKings further alleges that Hermalyn created a false residency to get out of the non-compete clause.
Hermalyn attempted to falsely show residency during a two-day visit to California in an attempt to invalidate his place of home — but he lives in New York.
He allegedly told co-workers on January 29 that he would be taking two days off after a “close friend” died.
But geolocation data shows him at Fanatics’ headquarters in Los Angeles.
The corporate espionage tale is fascinating and will test the jurisdiction laws as well as the strength of non-compete clauses.
