DraftKings, the popular sportsbook operator, has filed a lawsuit against its former vice president of VIP, Michael Hermalyn, accusing him of orchestrating an intricate plan to steal proprietary information before joining rival company Fanatics. The lawsuit alleges that Hermalyn faked the death of a friend as a cover story while he flew to Los Angeles to meet with Fanatics’ CEO, Michael Rubin, for contract negotiations.
According to DraftKings, Hermalyn is accused of downloading confidential documents related to DraftKings’ Super Bowl 2024 business plans before leaving for the meeting with Fanatics. The company claims that Hermalyn, in collaboration with Fanatics, timed his departure and theft of information to disrupt DraftKings’ customer and business relationships during the critical days leading up to the Super Bowl.
Hermalyn had been employed by DraftKings for three years before resigning on February 1, informing the company of his intention to join Fanatics as its VIP president. The lawsuit also alleges that Hermalyn secretly met with Rubin before last year’s Super Bowl and encouraged other DraftKings employees to do the same.
Additionally, Hermalyn is accused of engaging in unwelcome physical contact with a female employee without her consent and making inappropriate comments about her appearance, as reported by Front Office Sports.
In response to the allegations, a spokesperson from Fanatics dismissed them as “sour grapes” and suggested that DraftKings’ attempt to tarnish Hermalyn’s reputation stemmed from their dissatisfaction with his departure. The unnamed source further highlighted the reasons why employees may be choosing to leave DraftKings.
The lawsuit filed by DraftKings seeks to hold Hermalyn accountable for his alleged actions and protect the company’s confidential information and business relationships. The legal battle between the two sports betting competitors is expected to unfold in Massachusetts.
