Secrets Exposed? DraftKings Sues Former VIP Chief For Allegedly Revealing Secrets to Fanatics

DraftKings is taking the actions of its former VIP Chief very seriously. The U.S. legal sports betting giant has filed a lawsuit against Michael Hermalyn, a former executive, for allegedly stealing company secrets and sharing them with one of DraftKings’ main competitors, Fanatics. Both DraftKings and Fanatics are featured on our list of the top sports betting sites.

This week, DraftKings submitted a 49-page lawsuit in Massachusetts District Court alleging that Hermalyn devised a covert scheme over the past year to unlawfully obtain and utilize confidential information, entice customers and employees, and join rival company Fanatics, Inc., all in blatant disregard of his contractual obligations and responsibilities to DraftKings.

The lawsuit seeks to prevent Hermalyn from working for Fanatics and enforce a non-compete agreement he signed while employed with the company.

More on the suit

According to DraftKings, Michael Hermalyn claimed that a friend had died and needed to take a personal leave of absence, which they allege was false.

According to the lawsuit, Hermalyn visited the Fanatics California office to allegedly hold meetings with individuals associated with the Fanatics sportsbook. DraftKings claims that during this visit, the former VIP Chief accessed and obtained DraftKings’ confidential Super Bowl business plans while at the Fanatics office.

While in California, Hermalyn was able to successfully change his residency status by obtaining a California state driver’s license, establishing a residence in the state, and registering a car there.

DraftKings stated that all actions were taken in an effort to circumvent his non-compete agreement, which prohibited him from working in the gaming industry for a year after leaving the company. To access DraftKings’ promotions, readers can use our exclusive DraftKings promo code.

The lawsuit argues that if immediate action is not taken to prevent Hermalyn from breaking his agreements with DraftKings, he will have the opportunity to launch an illegal and strategic assault on DraftKings’ business. This could result in the diversion of its key customers right before one of the most crucial weekends for DraftKings.

The lawsuit claims that the plan had been in development for a year, following a meeting between Hermalyn and Fanatics executives to discuss potential job opportunities.

Other allegations

In addition to accusations of Hermalyn’s alleged breach of his previous employment agreement with DraftKings and disclosing the company’s strategies for increasing Super Bowl betting, other grievances against the ex-VIP Chief were also disclosed by the company.

This includes the hiring of additional senior DraftKings staff for Fanatics Underscoreg.

Another accusation involves inappropriate behavior towards female DraftKings employees, such as making inappropriate comments about their appearance and engaging in non-consensual touching.

Fanatics reaction

While Fanatics is not formally involved in DraftKings’ lawsuit, company executives have commented on the matter. A spokesperson from Fanatics stated that DraftKings’ allegations are simply a case of “sour grapes.”

According to the spokesperson, DraftKings’ reaction is simply sour grapes. The company is clearly unhappy that one of their employees decided to join Fanatics for better opportunities. Their unfounded accusations against a respected executive only serve to tarnish his reputation and reveal the reasons why employees are opting to depart from DraftKings.

As of now, DraftKings has not issued any public statement regarding the upcoming lawsuit.