DraftKings granted preliminary injunction against former executive


A federal judge on Tuesday severely restricted what services a former DraftKings executive could provide sports betting rival Fanatics after finding he likely misappropriated valuable trade secrets before taking a new job.

U.S. District Judge Julia Kobick in Boston stopped short of barring Michael Hermalyn from working for Fanatics, as DraftKings wanted after he quit his job to help build out its rival’s nascent team catering to “VIP” clients.

But Kobick enjoined him for a 12-month time period starting when he began his new job on Feb. 1 from providing services relating to any aspects of DraftKings’ business that he was involved in or for which he had received confidential information.

Kobick said the preliminary injunction, opens new tab was warranted as the evidence showed that Hermalyn had likely violated a non-compete agreement he signed while working at DraftKings and had misappropriated its confidential information before leaving to become the president of Fanatics’ VIP program.

A spokesperson for Fanatics, which is not a defendant, in a statement said it was a “bit dismayed at the breadth of the court’s ruling” but appreciated that Kobick rejected DraftKings’ bid to prevent Hermalyn from working for it.

“Mike is looking forward to rolling up his sleeves and building Fanatics’ business consistent with the court order,” the Fanatics spokesperson said.

A DraftKings spokesperson called the ruling a “victory” and said it “looks forward to continuing to prosecute its claims against Mr. Hermalyn to ensure he is held fully accountable for violating his legal obligations.”