Judge Rules Former DraftKings VP Can Continue at Fanatics, Grants Restraining Order for DraftKings
Photo by Craig Hudson for The Washington Post via Getty Images.
A judge ruled Thursday that Michael Hermalyn, a former DraftKings executive who moved to Fanatics on Feb. 1, will be able to remain working with Fanatics.
DraftKings filed a complaint alleging Hermalyn had violated a non-compete clause in his contract when he moved to Fanatics.
Following a short hearing in Boston, the U.S. District Judge issued a temporary restraining order prohibiting Hermalyn from using DraftKings confidential information or soliciting any DraftKings employees to work at Fanatics.
“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 said in a statement to Action Network.
In a win for Fanatics, Hermalyn was granted the right to continue to work for his new company as more facts are determined.
DraftKings alleged Hermalyn had an elaborate plot to cripple the VIP operation before the Super Bowl, according to court filings.
Last Thursday, Hermalyn's attorneys provided notice that they intended to seek an injunction preventing DraftKings from triggering the non-compete and non-solicitation agreements that were in Hermalyn's contract. The complaint suggested the agreements were overly restrictive and unenforceable in California.
According to Hermalyn's complaint, he moved to Los Angeles last Monday, three days before the lawsuit was filed. He signed a rental agreement for an apartment, obtained a California driver's license, bought a car in the state and plans to enroll his children in school in Los Angeles.