Former DraftKings executive Michael Hermaly n’s legal battle with rival Fanatics grew last Friday when DraftKings asserted in a court filing that he had “attempted to cover his tracks by destroying evidence” while staying at the home of Fanatics CEO Michael Rubin.
In their activity for a primary order before a Massachusetts federal judge, DraftKings goes into more detail about the allegations. Hermalyn may be prohibited from providing services to Fans until the jury decides the case’s merits, which would likely take months or longer if the injunction was granted by U.S. District Judge Julia Kobick.

DraftKings sued Hermalyn in February, accusing him of conspiring with Rubin and another business leaders. Hermalyn and Fanatics allegedly misappropriated delicate information while attempting to skill his career move without triggering a noncompete clause governed by Massachusetts law, as described by Lotto as a “double realtor.”
Lotto received a temporary restraining order from Kobick on February 8th, though it was a less comprehensive one than the business had requested. Hermalyn was prohibited by the TRO from contacting Lotto employees or customers, using any classified business information, or deleting, moving, or modifying any pertinent computer files. But the TRO did n’t prevent Hermalyn from working at Fanatics.
Hermalyn firmly denies any crime. He firmly rejects DraftKings ‘ complaints, dismissing them as “entirely fabricated” and grounded in lies. Hermalyn and Fanatics have filed a separate lawsuit against DraftKings in California, alleging that the noncompete clause is against California laws. California law forbids noncompete clauses despite Massachusetts legislation allowing them within defined limitations, including one year in which case they may be extended.
The petition strikes at the heart of a critical part of any sportsbook’s business—its most important customers. Hermalyn oversaw VIP connections at DraftKings, and he accepted a similar position at Fanatics. While regular bettors wager many smaller sums and generally bounce around between books chasing promos and deposit matches, a sportsbook’s VIPs are considerably more important, and if handled correctly, considerably more dedicated.
DraftKings claims in its most recent filing that it has received additional evidence and witness over the past quarter that details a complex scheme to steal intellectual property and trade secrets before hiding the tracks.
The esoteric allegation that Hermalyn allegedly heisted data while staying in Rubin’s California house earlier this year is one of DraftKings ‘ claims. It was there, DraftKings contends, where “forensic information proves” Hermalyn saved “dozens” of DraftKings files from a non- Lotto system. Hermalyn reportedly used Rubin’s home as a foundation to approach other Lotto executives and make him offers to work for Fanatics for a sum of money.

Hermalyn is even accused of attempting to conceal his actions. Lotto claims to have used AirDrop, Google, and file-transfer programs to transfer files from his DraftKings notebook to an phone. Hermalyn subsequently deleted his internet browsing history, as DraftKings claims. Some of the data contained business strategies, marketing techniques, customer and partner names and information of employees ‘ compensation packages.
Initial rulings are challenging to obtain, and they are regarded as extraordinary measures in court. If an injunction is not granted, then the draftkings must establish that it would suffer irreparable damage, which is hurt that cash damages ca n’t later remedy. DraftKings asserts that Hermaly n’s alleged use of confidential information will cause “immense” and irreparable harm.
Hermaly n’s attorneys will have the opportunity to refute the preliminary injunction. Believe them to accept the charges, insist Hermalyn and Fanatics acted legally, and portray Lotto as unnecessarily trying to prevent a worker’s motion from one company to another. Hermalyn will probably also make distinctions between what Hermalyn will claim really happened and was said in DraftKings ‘ retellings of events and meetings.
Hermalyn and Sportico exchanged a speech on Thursday:
” To correct this, I left DraftKings, a career I loved and people I also respect, for an amazing opportunity to work for Fans and head its Los Angeles business. The most recent presentation from DraftKings before the Massachusetts judge is not based on actual events; it is merely intended to hurt my character and reputation through deception and distortion. I look forward to revealing the true circumstances underlying the falsehoods. Lotto appears to be sticking to their strategy of thwarting competitors and frightening their own employees.
( With guidance from Eben Novy- Williams. )
( The statement from Hermalyn has been updated in the final two paragraphs of this story. )