{"id":4152,"date":"2025-01-03T17:13:45","date_gmt":"2025-01-03T18:13:45","guid":{"rendered":"http:\/\/restaurace-pohoda.eu\/?p=4152"},"modified":"2025-01-09T13:42:22","modified_gmt":"2025-01-09T13:42:22","slug":"draftkings-settles-corporate-espionage-lawsuit-vs-former-exec","status":"publish","type":"post","link":"http:\/\/restaurace-pohoda.eu\/index.php\/2025\/01\/03\/draftkings-settles-corporate-espionage-lawsuit-vs-former-exec\/","title":{"rendered":"DraftKings Settles \u2018Corporate Espionage\u2019 Lawsuit Vs. Former Exec"},"content":{"rendered":"

DraftKings has settled a legal spat with its former head of VIP, Michael Hermalyn, whom the operator accused of \u201ccorporate espionage<\/a>\u201d after the executive jumped ship to its rival, Fanatics.<\/p>\n

\"Michael
Michael Hermalyn, above, denied DraftKings\u2019 allegations, but he is severely restricted in the duties he can perform for Fanatics until February 1. (Image: Cheddar)<\/figcaption><\/figure>\n

The terms of the settlement have not been disclosed, but it comes three months after the 1st U.S. Circuit Court of Appeals in Boston rejected\u00a0Hermalyn\u2019s bid to overturn a lower court injunction that severely restricted the type of work he could do at Fanatics.<\/p>\n

The lower court determined last April that a noncompete clause Hermalyn signed while at DraftKings was enforceable.<\/p>\n

\u2018Stolen\u2019 Super Bowl Plan<\/strong><\/h2>\n

Boston-based DraftKings sued Hermalyn in Massachusetts in February 2004 claiming he plotted to join Fanatics for over a year before leaving. The lawsuit alleged he took with him confidential information about DraftKings\u2019 VIP clients, along with its Super Bowl business plan.<\/p>\n

Fanatics is best known as a platform that sells\u00a0licensed sports merchandise, trading cards, and collectibles, but in late 2004, it launched a sportsbook. At some point, the company invited Hermalyn to join as president of its VIP program, although when this actually happened is disputed.<\/p>\n

\n

Hermalyn denied<\/a> the DraftKings allegations. He claimed he didn\u2019t have an offer to join Fanatics until January 2024 and denied secretly discussing employment with anyone else at the company in 2023.<\/p>\n<\/div>\n

He also denied sharing any documents with Fanatics or having access to any DraftKings files after his resignation.<\/p>\n

Hermalyn further argued that California\u2019s Business & Professions Code prohibits an employer from enforcing a noncompete agreement regardless of whether the contract was signed outside of California. While Fanatics is based in Jacksonville, Fla., Hermalyn was hired to head up its Los Angeles office.<\/p>\n

California Suit<\/strong><\/h2>\n

As such, he filed his own lawsuit in California to challenge the noncompete agreement. The judge in that case determined Hermalyn would likely prevail under California law, but declined to act because he said there would have to be exceptional circumstances to interfere with a court ruling in another state.<\/p>\n

Hermalyn is enjoined from providing services to Fanatics that relate to any aspect of DraftKings business for a year from the date he started his new job \u2013 a period that is due to end on February 1, 2025.<\/p>\n

\u201cAll litigation between them has been settled and dismissed on confidential terms, and Mr. Hermalyn will abide by his contractual commitments to DraftKings,\u201d Russell Beck, a lawyer for Hermalyn, said in a statement to Reuters.<\/p>\n

The post DraftKings Settles \u2018Corporate Espionage\u2019 Lawsuit Vs. Former Exec<\/a> appeared first on Casino.org<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

DraftKings has settled a legal spat with its former head of VIP, Michael Hermalyn, whom the operator accused of \u201ccorporate espionage\u201d after the executive jumped ship to its rival, Fanatics. Michael Hermalyn, above, denied DraftKings\u2019 allegations, but he is severely restricted in the duties he can perform for Fanatics until February 1. (Image: Cheddar) The…<\/p>\n","protected":false},"author":1,"featured_media":4154,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"_links":{"self":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/4152"}],"collection":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/comments?post=4152"}],"version-history":[{"count":2,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/4152\/revisions"}],"predecessor-version":[{"id":4155,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/posts\/4152\/revisions\/4155"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/media\/4154"}],"wp:attachment":[{"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/media?parent=4152"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/categories?post=4152"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/restaurace-pohoda.eu\/index.php\/wp-json\/wp\/v2\/tags?post=4152"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}