In the sports gambling arena, a legal battle ensues between industry titans—Michael Hermalyn, the recently appointed upper echelon executive of Fanatics, fervently denied charges pressed by heavyweight competitor DraftKings. Labels such as “groundless and disconcerting,” as well as “misleading and concocted” were words that came from Hermalyn to describe the allegations.
Ex-DraftKings Staff Rejects Accusations of Engaging in Confidential Data Heist Scheme with C-suite Executive of Fanatics
Stakes heightened when DraftKings instigated legal proceedings, implicating Hermalyn—a former employee—of covertly colluding with Fanatics’ Michael Rubin, the chief officer, to purloin customer data before his switch to an executive role at Fanatics. The dispute intensified with the submission of a comprehensive 16-page legal document in a Massachusetts courthouse, according to a story by Front Office Sports.
On his part, Hermalyn hit back against DraftKings’ claims with a statement presented to federal court, rebuking the accusations as “utterly wrongful and contrived.” Hermalyn communicated his surprise and discontent about the weight of the allegations, highlighting his foresight of DraftKings’ hardball strategies based on past occurrences.
In terms of addressing certain charges, Hermalyn rejected DraftKings’ assertion about his supposed visit to Fanatics’ LA headquarters, stating that he was actually in Pennsylvania liaising with Rubin. He clarified that conversations about his role at Fanatics took place after January 27, thereby refuting DraftKings’ suggestion of a pre-planned conspiracy.
Furthermore, Hermalyn dismissed DraftKings’ accusation concerning his travelling motivations, underlining his emotional distress after a friend’s cancer-related death, which coincided with a crucial job opportunity at Fanatics.
DraftKings Accuses Ex-Official of Misconduct Amidst Legal Skirmish
DraftKings keeps holding its ground, contending that Hermalyn’s exit was thoughtfully scheduled to cause maximal disruption, specifically during the pre-Super Bowl 2024 period. The firm claims that Hermalyn surreptitiously accessed privileged information, including strategic plans, for competitive advantage in his new role at Fanatics.
In the midst of the legal face-off, DraftKings has likewise brought forward further allegations against Hermalyn, one of which includes inappropriate conduct towards a female peer during his tenure.
Fanatics counteracted DraftKings’ allegations, rejecting them as unfounded and attributing them to bitterness over Hermalyn’s exit. A Fanatics’ representative described DraftKings’ moves as “a case of sour grapes,” indicative of a ploy to tarnish Hermalyn’s good standing.
Concurrently, Hermalyn has initiated a lawsuit questioning the validity of non-compete clauses in his contract, stating they’re excessively inhibitive.
DraftKings challenges the lawsuit’s jurisdictional basis, arguing it ought to be resolved in Massachusetts rather than California where Hermalyn currently resides.
