DraftKings Resolves Corporate Espionage Lawsuit Against Former VIP Executive
DraftKings and former VIP head Michael Hermalyn have reached a confidential settlement in their corporate espionage lawsuit. The resolution comes after Hermalyn left DraftKings for rival Fanatics, sparking legal battles over noncompete agreements and alleged information theft.
Man in business suit looking neutral
The dispute began when DraftKings sued Hermalyn in Massachusetts in February 2024, claiming he:
- Planned his move to Fanatics for over a year
- Took confidential VIP client information
- Stole DraftKings' Super Bowl business plan
Hermalyn contested these allegations, stating he:
- Only received Fanatics' offer in January 2024
- Never shared DraftKings' documents
- Lost access to company files after resignation
The legal battle involved multiple jurisdictions:
- A Boston appeals court upheld restrictions on Hermalyn's work at Fanatics
- Hermalyn filed a counter-suit in California challenging the noncompete agreement
- The California judge declined to interfere with the Massachusetts ruling
Under the settlement terms, Hermalyn must honor his contractual commitments to DraftKings until February 1, 2025, limiting his involvement in competing business activities at Fanatics.
"All litigation between them has been settled and dismissed on confidential terms, and Mr. Hermalyn will abide by his contractual commitments to DraftKings," confirmed Russell Beck, Hermalyn's attorney.
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